Private sector lender YES Bank reported 25.1% growth in its net profit for the quarter ended September 30 to ₹1,002.7 crore aided by healthy growth in both interest and non-interest income.
Net interest income grew 33.5% to ₹1,885.1 crore while non-interest income grew 35.4% to ₹1,248.4 crore. Net interest margins improved 30 basis points year-on-year to 3.7%.
However, provisions rose on the back of an increase in bad loans with gross non-performing assets jumping threefold to ₹2720.3 crore which was 1.82% of gross advances as compared with ₹916.7 crore or 0.83% a year earlier and 0.97% as on June 30. As a result, provisions shot up 176.5% to ₹447.1 crore. Provision coverage ratio declined to 43.3% as compared with 64.8% a year ago and 60% sequentially.
According to a regulatory filing, the bank said following the risk based supervision (RBS) of Reserve Bank of India (RBI) for 2016-17, which concluded in October 2017, the divergence in gross NPA was ₹6,355.2 crore.
“Bank’s asset quality continues to demonstrate resilience after duly incorporating full impact of the RBI RBS observations for FY17, concluded in October 2017,” said Rana Kapoor, Managing Director & CEO of the bank.
The bank reported a growth in deposits of 23.4% year-on-year driven by a healthy growth in current and savings account deposit which constituted 37.2% of the total deposits.
The loan book grew 34.9% on the back of robust growth in both corporate and retail businesses. Retail banking advances grew by 78% year-on-year and now constitutes 11.4% of total advances.
