Mumbai Capital

Yes Bank Q4 net up 27%, asset quality worsens

Private sector lender YES Bank on Wednesday reported 27.4 per cent growth in net profit to Rs 702 crore for the quarter ended March 31 on the back of robust growth in both core income and non-interest income.

Net interest income — the difference between interest earned and interest expanded — grew by 27 per cent to Rs 1,241 crore due to healthy loan growth.

Non-interest income grew by 36 per cent to Rs 809 crore.

The loans grew by 30 per cent during the financial year 2015-16 to Rs 98,200 crore.

On the liabilities side, growth of current and savings account (Casa), which are low-cost deposits, was 48.7 per cent year-on-year, which helped improve the share of low-cost deposits to 28 per cent as compared to 23 per cent, a year ago.

The net interest margin for the January-March quarter was 3.4 per cent as compared to 3.2 per cent a year ago.

Asset quality, however, worsened as gross non-performing asset ratio moved up to 0.76 per cent (Rs 749 crore) from 0.41 per cent a year ago. Net NPA rose 17 bps in one year to 0.29 per cent.

As a result, provisioning for the fourth quarter went up 47.6 per cent to Rs 186.5 crore.

Rana Kapoor, managing director and chief executive director of the bank, said: “YES Bank continues to show resilience on all Asset Quality parameters with highly manageable credit costs in an extremely challenging year: Financial Year ’16. “With RBI Asset Quality Review impact fully factored in, we remain well-positioned to grow at a faster pace and acquire market share across Retail, SME and Corporate Businesses in the backdrop of an improving macro and policy environment.”

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Printable version | Jan 17, 2021 10:14:54 AM |

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