YES Bank net profit jumps 38% in June quarter

Higher interest income and robust loan growth helped private sector lender YES Bank report a 38 per cent jump in net profit at Rs 401 crore in the April to June quarter.

The mid-sized bank had posted a profit of Rs 290 crore in the year-ago quarter.

Net interest income (difference between interest earned and expended) increased 40 per cent at Rs 659 crore (from Rs 472 crore in Q1FY13) due to higher margins and advances growth. Other income rose 53 per cent to Rs 442 crore (Rs 288 crore in Q1FY13).

During the quarter, net interest margin increased to 3 per cent as against 2.8 per cent in the corresponding quarter last fiscal.

As on June 30, 2013, total advances grew 24 per cent year-on-year to Rs 47,898 crore (from Rs 38,534 crore as on June 30, 2012). Deposits growth was higher by 30 per cent at Rs 65,245 crore (from Rs 50,208 crore).

Gross non-performing assets (NPAs) or bad loans declined marginally to 0.22 per cent from 0.28 per cent as on Q1FY13. Net NPAs also reduced to 0.03 per cent (from 0.06 per cent).

Capital adequacy ratio, based under the Basel III norms, declined to 15.4 per cent from 17 per cent in the same quarter last year.

Despite strong first quarter results, the RBI measures announced on Tuesday impacted the bank’s scrip which fell 11.76 per cent and was trading at Rs 387.15 per share on the Bombay Stock Exchange.