Robust growth in net interest income and other income helped YES Bank report a 34 per cent increase in net profit in the April-June quarter.
The private sector bank clocked a net profit of Rs 290 crore against Rs 216 crore in the year-ago period.
Net interest income (difference between interest earned and expended) rose 33 per cent to Rs 472 crore.
Non-interest income, comprising financial advisory, investment banking, financial markets and fee income, jumped 74 per cent to Rs 288 crore.
Net interest margin (expressed as a ratio of net interest income to average earning assets) was unchanged at 2.8 per cent due to cost pressures, said Mr Rana Kapoor, Managing Director and CEO, YES Bank.
Year-on-year, total deposits rose by 15 per cent on the back of a huge rise in savings bank deposits. Loans grew by 16 per cent.
The restructured assets portfolio was unchanged at Rs 196.5 crore. Gross non performing assets ratio increased to 0.28 per cent as on June 30, 2012 from 0.17 per cent a year ago.
The bank’s total loan loss coverage ratio was at 295 per cent as on June 30, 2012.
YES Bank plans to focus on the retail segment and also look at selective sectors like hospitality, FMCG, healthcare, and education which are less affected by the interest rate changes.
“There is a slowdown in the infrastructure and manufacturing sector. Under the current economic scenario, we will focus on sectors with lower risk and also garner more fee income,” Mr Kapoor said.
The shares of the bank closed at Rs 346.05 a share on Wednesday, up 1.38 per cent from yesterday’s close on the Bombay Stock Exchange.