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Private sector lender YES Bank posted a 19 per cent increase in net profit in the January-March quarter at ₹430 crore, helped by strong loan growth, stable margins and lower provisions.
Net interest income (difference between interest earned and expended) grew 13 per cent. Non-interest income was up 17 per cent, aided by transaction banking and retail banking fees.
During the quarter, provisions and contingencies fell 26 per cent to ₹72 crore from ₹98 crore in the corresponding period of the previous year.
“Our asset quality has improved from the December quarter. Macroeconomic challenges continue but the stress is bottoming out now,” said Rajat Monga, CFO of the bank.
Gross non-performing asset (NPA) ratio deteriorated by 11 basis points to 0.31 per cent from a year earlier, but improved eight basis points from a quarter ago.
Total restructured assets declined to ₹100 crore from ₹144 crore in the previous year. The mid-sized bank also made recoveries of about ₹35 crore in the three-month period.
As on March end 2014, total advances grew 18 per cent, while deposits were up 11 per cent on the back of increased current and saving accounts.
The bank is steadily improving share of granular deposits with investment in people and branches.
Sequentially, net interest margins increased to 3 per cent from 2.9 per cent.
Full-year results Net profit increased 24 per cent for the full year ending March 31, 2014, at ₹1,618 crore as compared with ₹1,300 crore recorded a year ago. NII rose 22 per cent year-on-year and non-interest income jumped 37 per cent. The bank’s board declared a dividend of ₹8 per share as against a dividend of Rs 6 in the previous year.
YES Bank scrip ended at 441.55 per share, up 1.67 per cent over the previous close on the Bombay Stock Exchange.
Stake talk Denying reports of L&T Finance Holdings eyeing stake in YES Bank, Monga said, “I am not in a position to comment…I have no information of the chairman (of the bank) visiting the RBI on this regard.”
He also said that the bank has grown over the last 10 years and is now “on its feet firmly.”
Refusing to respond, N Sivaraman President and whole-time Director of L&T Finance Holdings said, “We do not comment on speculation.”
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