Yes Bank reported a 28 per cent rise in its net profit for the April-June quarter, aided by a strong growth in its net interest income.
Yes Bank reported a net profit of Rs 551 crore in the June quarter, against Rs 432 crore in the year-ago period. Its net interest income (NII), or the difference of interest earned over interest expended, reported a strong growth of 42 per cent to Rs 1,060 crore.
Yes Bank's earnings were in line with the Street's estimates. Analysts polled by NDTV had estimated its net profit at Rs 550 crore on net interest income of Rs 1,030 crore.
Its non-interest income, which includes fee income and treasury income, surged 32 per cent to Rs 545 crore in the June quarter.
Yes Bank's asset quality witnessed marginal deterioration in the June quarter. Its gross nonperforming assets (GNPA) as a percentage of total advances increased 5 basis points sequentially to 0.46 per cent while its net nonperforming assets edged up to 0.13 per cent against 0.12 per cent in the March quarter. Analysts polled by NDTV had estimated its GNPA ratio at 0.5 per cent.
Commenting on the Yes Bank earnings, Kaitav Shah of SBICap Securities, said, "The NII is ahead of estimates, it is a decent set of numbers. The asset quality has deteriorated a bit, but considering the fact that the NII growth is pretty strong, I think it is a pretty good number." (Watch)
Yes Bank made a provision of Rs 98 crore for bad loans in the Q1, which is sharply higher than the Rs 23.7 crore provision made in the year-ago period.
Yes Bank also reported an improvement in its profitability in the June quarter. Its net interest margin, which is a measure of profitability for banks, increased 10 basis points sequentially and 30 basis points annually to 3.3 per cent in the April-June quarter.
Yes Bank shares ended 2.45 per cent higher at Rs 814.10 apiece, against 0.22 per cent gain in the benchmark Bank Nifty.
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