NEW DELHI: Private sector lender Yes Bank on Thursday reported a 30.5 per cent jump in net profit earned during the first quarter of this financial year, despite higher provisioning. As per the financials disclosed by the bank, net profit came in at Rs 1,260.3 crore compared to Rs 965.52 crore for the same period of last year. While provisioning on account bad loans nearly doubled to Rs 625.65 crore during the quarter from Rs 285.78 crore, high growth in its core businesses eclipsed the effects of a slight rise in non-performing assets (NPA).
Gross non-performing assets rose to 1.31 per cent of advances against 0.97 per cent last year, while net NPAs were up to 0.59 per cent from 0.39 per cent. The primary driver of its profitability, Yes Bank reported 22.7 per cent growth in net interest income to Rs 2,219.1 crore while non-interest income jumped 49.6 per cent Rs 1,694.1 crore. “The growth has been well segmented...particularly retail business which grew 105 per cent year-on-year taking retail banking proportion in total advances to 14 per cent. The exponential growth momentum in retail...is further expected to increase granularity in the bank’s asset and liabilities over the quarters to come,” Yes Bank MD & CEO Rana Kapoor said.
The bank has also received approval from SEBI to commence its mutual fund business which will complement and further augment bank’s retail liabilities and wealth management product offerings, he added.Total capital adequacy for the bank stood at 17.3 per cent with total capital funds at Rs 46,983.7 crore.
Maruti Suzuki sees 27% jump in profit
New Delhi: Maruti Suzuki India Ltd (MSIL), India’s largest carmaker, reported a 26.91 per cent increase in standalone net profit, clocking in at I1,975.3 crore for the first quarter of FY19. According to company officials, robust sales during the quarter drive growth and profitability, with total sales during the period standing at I21,810.7 crore compared to I19,374.1 crore last year. In terms of units, MSIL sold 4,90,479 vehicles against 3,94,571 units in the year-ago period, with total sales up 24.3 per cent and domestic sales up 25.9 per cent at 4,63,840 units, from 3,68,431 a year ago. Industry growth in contrast, stood at 19.9 per cent during the period. However, rising commodity prices affected the firm’s profitability, with MSIL CFO Ajay Seth telling analysts that since Q4 last fiscal, there has been an uptick in commodity prices, especially steel. Adverse foreign exchange trends could also be a cause of concern, with Seth stating that it would be important to note how it pans out in the next three quarters.