Yes Bank posts 56 per cent growth in Q1 net
22 Jul 2010
A sharp jump in net interest income with a loan book that has almost doubled, along with lower provisions for bad loans, helped new generation private bank Yes Bank's net profit grow 56 per cent in the first quarter of the fiscal against the corresponding period last year to reach Rs156 crore
Net interest income rose 67 per cent to Rs262.1 crore from Rs156 crore in the comparable period last year. The net interest margin, the difference between the yield on advances and cost of funds, stood at 3.1 per cent.
Provisions for bad loans stood at Rs12.5 crore in the first quarter against Rs45.5 crore in the corresponding period last year. Gross non-performing assets stood at Rs59 crore against Rs61 crore and net NPA stood at Rs11 crore compared with Rs30 crore in the same period last year.
Advances rose 107 per cent on a year on year basis to Rs26,257 crore, and 18 per cent on an incremental basis (April to June). Bank officials said a portion of incremental growth in advances was one-off in nature, occurring because of lending to sectors like telecom, which borrowed heavily from banks in June to pay for third-generation licence fee and broadband wireless access spectrum.
Deposits almost doubled on a year on year basis to Rs30,239 crore as on 30 June. Low-cost deposits (current and savings account deposits) constituted 10.5 per cent of the overall deposit mix.
The bank's balance sheet stood at Rs40,928 crore. Speaking to the media in Mumbai today, Yes Bank managing director and chief executive officer Rana Kapoor said, ''We aim to achieve credit and deposits growth in the range of 40-45 per cent for this financial year.''
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