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Strong loan growth and non-interest income boosted YES Bank’s net profit, which rose 28 per cent to ₹551 crore in the quarter ended March 31, 2015 compared to ₹430 crore in the year ago period.
The increase in profitability is despite a 75 per cent jump in provisions at ₹126 crore (₹72 crore in the year ago period).
For the financial year ended March 31, 2015, the private sector lender recorded 24 per cent increase in net profit at ₹2,005 crore as against ₹1,618 crore in the previous year.
Dividend
The bank’s board of directors have recommended a dividend of ₹9 per equity share.
In the reporting quarter, Yes Bank clocked a 36 per cent rise in net interest income (the difference between interest earned and expended) at ₹977 crore (₹720 crore in the January-March 2014 quarter). Non-interest income, comprising core non-interest income (commission on letters of credit and bank guarantee, processing fee, service charges, other fee income), profit on exchange transactions, and treasury income was up 32.5 per cent at ₹590 crore (₹445.5 crore).
As at March-end 2015, the bank saw a 36 per cent year-on-year growth in loans to ₹75,550 crore (₹55,633 crore as at March-end 2014).
Deposits grew 23 per cent to ₹91,176 crore (₹74,192 crore).
Net interest margin (excess of interest income over interest expense scaled by total assets) improved to 3.2 per cent as at March-end 2015 against 3 per cent as at March-end 2014.
Gross Non-Performing Assets (NPA) as well as net NPA ratios weakened a tad 0.41 per cent (0.31 per cent) and 0.12 per cent (0.05 per cent), respectively.
The bank said the year-on-year increase in provision was driven by the step up in the excess standard provision, to the extent of ₹51 crore, in the reporting quarter.
Capital raising
The bank’s board of directors have approved raising funds by way of issuance of equity capital up to $1 billion in one or more tranches. The issuance may be by way of Qualified Institutions Placement or any other international offering like Global Depository Receipts /American Depository Receipts, or by any other appropriate mode as decided by the Capital Raising Committee.
The board also gave its approval to raise ₹10,000 crore by issuing infrastructure bonds/ Tier-I/ Tier II bonds.
YES Bank shares closed 1.43 per cent up at ₹795.75 per share on the BSE over the previous close.
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