The Hindu Business Line : YES Bank net surges 85% on income growth

Mumbai, July 21 Private sector bank YES Bank’s net profit increased by 85 per cent to Rs 100 crore for the quarter ended June 30, from Rs 54 crore in the corresponding period last year. The rise in profits was on account of strong growth in both interest and non-interest income.

“Both our non-interest and net interest income have grown. There are signs of economic recovery,” said Mr Rajat Monga, Chief Financial Officer.

Within non-interest income, financial markets contributed Rs 85 crore, financial advisory Rs 25 crore, transactional banking Rs 25 crore, and third party distribution and retail fee Rs 9.9 crore.

The bank also increased its provisions substantially to Rs 45 crore (Rs 8 crore). “Our planning for provisions has always been ahead of time. It has helped reduce our net non-performing assets,” Mr Monga said. Net interest margin increased to 3.1 per cent (2.9 per cent) and cost of funds decreased to 8.1 per cent (8.4 per cent). The ratio of low-cost current account savings account (CASA) deposits was 9.5 per cent. “The target is to grow the CASA by 3-5 per cent every year,” Mr Monga said.

This fiscal, the bank is looking at a credit growth of 38-40 per cent and a deposit growth of 40-50 per cent.

It is also looking to raise up to $250 million in one or more tranches by way of QIP, preferential allotment or any other mode, it said in a release to the BSE.

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