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YES Bank’s net profit surged 26.5 per cent to ₹610 crore in the September quarter. The profit was driven by a healthy jump in loan growth and higher interest income.
Net interest income increased 29 per cent year-on-year to ₹1,108.50 crore. Other income rose 22 per cent to ₹618 crore.
Rana Kapoor, Managing Director and CEO, YES Bank, said: “Our profit is attributed to overall improvement in the net interest income and healthy CASA (current account, savings account) growth…the jump in non-performing assets (NPAs) is a reflection of the economy.
“Primarily, gas-based power projects, and iron and steel sector are still a few months away (from recovery). It will be tough next six months for the sectors. Also, some duty relaxation is needed in the iron and steel industry and some help in the roads and railways sector,” Kapoor said.
Gross non-performing assets (NPAs) of the bank increased to 0.61 per cent of total advances, from 0.36 per cent in the same quarter of the previous year.
No sale to ARCs The bank made no sale to ARCs (hasn’t sold for four quarters).
The bank’s total standard restructured advances stood at ₹569 crore as on September 30, 2015.
Net interest margin increased a tad to 3.3 per cent over a year ago from 3.2 per cent. Sequentially, it remained flat.
On Thursday, YES Bank shares ended at ₹743.50 apiece, 1.95 per cent higher over the previous close on the BSE. The mid-sized lender has got approval from its board to raise $1 billion in the current fiscal year. “Qualified institutional placement (QIP) is the most effective way of raising capital… we are also technically prepared for ADRs or GDRs (American depositary receipts and Global Depositary Receipts),” Kapoor said.
The bank will also raise tier-2 bonds of “minimum ₹500 crore during the October-December quarter. We are waiting for the yields to come down,” he added.
It may also go to the market to raise overseas funds for the branch in GIFT city, near Gandhinagar, Gujarat.
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