YES Bank, on Wednesday, posted an 18.8 per cent increase in the March quarter profit to Rs.430.20 crore, helped by a healthy increase in non-interest income.
The city-based private bank, embroiled in a legal battle over a board position for the co-promoter’s family, had reported a profit of Rs.362.2 crore a year earlier.
The core net interest income grew 12.8 per cent to Rs.719.6 crore on a 15.4 per cent jump in customer assets, while the net interest margin remained flat at 3 per cent.
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Driven by transactional revenue and retail banking, non-interest income grew 17.4 per cent to Rs.445.50 crore in the fourth quarter ended March 31, Yes Bank Chief Financial Officer Rajat Monga said.
Other components of fee income were tepid during the quarter, he said.
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For the full financial year, the net profit grew 24.4 per cent to Rs.1,617.78 crore from Rs.1,300.70 crore a year ago.
The bank board proposed a dividend of 80 per cent, or Rs.8 per share for 2013-14. The board also approved a proposal to raise funds by issuing equity up to $500 million in one or more tranches by way of QIP or other international offering, including global depository receipts/ADRs.
Total income rose to Rs.3,013.57 crore in the January-March period from Rs.2,667.03 crore in the same period of the previous financial year, the bank said in a statement.
The bank is targeting net interest margin of 3.15 per cent in 2014-15 and growth of 20 per cent each in advances and deposits, Mr. Monga said.
On reports that L&T Finance, which lost out on a bank licence, is in talks to pick up a stake in Yes Bank, Mr. Monga said it was up to the non-banking finance company’s management to respond. — PTI