Private sector lender Yes Bank reported better-than-estimated earnings for the July-September quarter on account of 31 per cent growth in its net interest income, sending its shares 2 per cent higher.
Yes Bank's net profit grew 32 per cent annually to Rs 802 crore in Q2, compared to Rs 610 crore in the year-ago quarter. Its net interest income (NII), the excess of interest earned over interest paid on deposits, grew to Rs 1,446 crore, against Rs 1,108 crore year-on-year.
Analysts polled by NDTV Profit had estimated Yes Bank's net profit at Rs 777 crore, while its NII was seen growing to Rs 1,388 crore.
Market analyst G Chokkalingam said that Yes Bank has outperformed the industry in terms of profit growth, loan growth and asset quality. The valuation of Yes Bank could improve further if the lender maintains this kind of growth, he said.
Yes Bank's other income, which includes fee incomes from selling third-party products, forex gains and financial advisory fees, jumped 44 per cent to Rs 888 crore compared to Rs 618 crore last year.
Meanwhile, asset quality of Yes Bank also remained stable in the September quarter. Its gross non-performing assets (GNPA) as a percentage of total advances stood at 0.83 per cent compared to 0.79 per cent in the June quarter. On an absolute basis gross bad loans increased to Rs 917 crore against Rs 844 crore sequentially.
Yes Bank's net NPA, which is gross NPA minus provisions, remained stable sequentially at 0.29 per cent of total advances.
Yes Bank shares closed 1.34 per cent higher at Rs 1,308.80 compared to 1.27 per cent gain in the industry benchmark Nifty Bank.
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