YES Bank reported a robust 30 per cent year-on-year increase in fourth quarter net profit on the back of healthy increase in net interest income and non-interest income even as its asset quality came under pressure.
The private sector bank reported a net profit of ₹914 crore in the quarter ended March 31, 2017, as against ₹702 crore in the year-ago period.
The bank’s board recommended payment of final dividend of ₹12 per equity share (that is, 120 per cent).
The board also approved raising of funds by way of issuance of debt securities, including but not limited to non-convertible debentures, medium term notes (MTN), bonds up to ₹20,000 crore to eligible investors on private placement, subject to approval of the shareholders.
For the full financial year, the net profit was up 31 per cent at ₹3,330 crore (₹2,539 crore in the previous year).
In the reporting quarter, net interest income (the difference between interest earned and interest expended) rose 32 per cent at ₹1,640 crore (₹1,241 crore in the year-ago period).
Non-interest income jumped 57 per cent to ₹1,257 crore (₹803 crore).
Gross, net NPAsProvisions and contingencies rose to ₹310 crore (₹186 crore). As at March-end 2017, gross non-performing assets (GNPA) and net non-performing assets (NNPA) rose to 1.52 per cent (0.76 per cent as at March-end 2016) and 0.81 per cent (0.29 per cent), respectively.
The bank said GNPA includes one borrower with gross exposure of 0.69 per cent of gross advances (₹911.50 crore) and net exposure of 0.52 per cent (₹683.60 crore) of net advances which is expected to be recovered in the near term.
In a statement, the bank said the increase in NPA and consequent provision is in conformity with the divergences observed by the RBI as per its compliance process referred to in the circular on ‘Disclosure in the Notes to Accounts to the Financial Statements – Divergence in Asset Classification and Provisioning’.
MD & CEO Rana Kapoor explained that the increase in NPA and provisions was largely a consequence of one single borrower, a cement company based in north India.
“We have enough documentation and we expect to recover it (loan) in the near term,” said Kapoor.
Speaking about the year ahead, the YES Bank chief said the engineering, procurement and construction sector, with the government’s push for infrastructure and affordable housing, is improving and by and large the economic outlook is looking much better.
YES Bank shares closed at ₹1,605.40 apiece, down 0.03 per cent over the previous close on the BSE.