YES Bank clocked 32 per cent growth in net profit in the first quarter ended June 30, 2017, on the back of robust growth in advances and low-cost deposits.
The bank’s board approved sub-division of equity shares of face value ₹10 into five shares of face value ₹2 each.
The private sector bank reported a net profit of ₹965.5 crore against ₹732 crore in the year-ago quarter.
Net interest income (the difference between interest earned and interest expended) jumped 44 per cent to ₹1,809 crore (₹1,256 crore).
Non-interest income, comprising fee, trading profit and miscellaneous income, was up 18 per cent at ₹1,132 crore (₹961 crore).
Rana Kapoor, MD & CEO, said: “Our investments in retail franchise are now demonstrating meaningful outcomes...through robust CASA (current account, savings account) growth of 55.2 per cent and core retail advances growth of 166 per cent.”
Net interest margin improved to 3.7 per cent in the reporting quarter from 3.4 per cent in the year-ago quarter. Deposits rose 22.6 per cent to ₹1,50,241 crore. Advances were up 32 per cent to ₹1,39,972 crore.
As at June-end 2017, gross non-performing assets edged up to 0.97 per cent, from 0.79 per cent as at June-end 2016.
According to agency reports, Kapoor said that 75 per cent of corporate loan exposure was ‘A’ or better rated.
With rapid adoption of digital banking by customers, the bank has cut its branch expansion plan.
It aims to have 1,800 branches by March 2020 as against 2,500 planned earlier. It may also curtail investment in ATMs to bank digitally.
On Wednesday, YES Bank shares closed at ₹1,712.55 apiece, up 6.10 per cent over the previous close, on the BSE.