MUMBAI: Stable asset quality and a spike in other income boosted the June quarter net income of Yes Bank by 59.4 percent year-on-year to Rs 801 crore. This is the bank's highest quarterly profit since its reconstruction in March 2020.
The management led by chief executive Prashant Kumar attributed the rise net profit to strong growth in non-interest income, improved cost efficiency, and stable asset quality.
Net interest income for the quarter rose 5.7 percent to Rs 2,371.5 crore, aided by an a reduction in the cost of funds. Net interest margin rose 10 bps to 2.5 percent from a year ago and was stable sequentially.
Non-interest income surged 46.1 percent to Rs 1,752 crore, primarily from treasury gains. But core fee income grew a modest 3 percent to Rs 1,268 crore, with retail contributing 56.4 percent to the fee base.
Asset quality remained stable, with gross non-performing assets printing at 1.6 percent and net NPA at 0.3 percent. The provision coverage ratio improved to 80.2.
Recoveries and upgrades of Rs 1,170 crore for the quarter, including Rs 338 crore from security receipts. Slippages, however, rose to Rs 1,458 crore from Rs 1,223 crore in the previous quarter.
Advances grew 5 percent to Rs 2.41 trillion, driven by a 19 percent growth in commercial banking and 11.2 percent growth in the microfinance. Retail advances were flat, growing just 0.3 percent.
Total deposits rose 4.1 percent to Rs 2.76 trillion, led by strong traction in retail and branch banking. The Casa ratio improved to 32.8, up 200 bps.ENS@Mumbai
Stable asset quality and a spike in other income boosted the net income of Yes Bank by a good 59.4 percent on-year to Rs 801 crore, its highest quarterly profit since its reconstruction in March 2020. The management led by chief executive Prashant Kumar attributed the good showing to the strong growth in non-interest income, improved cost efficiency, and stable asset quality.
Net interest income for the quarter to June rose 5.7 percent to Rs 2,371.5 crore, aided by an a reduction in the cost of funds. Net interest margin rose 10 bps to 2.5 percent. from a year ago and was stable sequentially.
Non-interest income surged 46.1 percent to Rs 1,752 crore, primarily from treasury gains. But core fee income grew a modest 3 percent to Rs 1,268 crore, with retail contributing 56.4 percent to the fee base.
Asset quality remained stable, with gross non-performing assets printing at 1.6 percent and net NPA at 0.3 percent. The provision coverage ratio improved to 80.2.
Recoveries and upgrades of Rs 1,170 crore for the quarter, including Rs 338 crore from security receipts. Slippages, however, rose to Rs 1,458 crore from Rs 1,223 crore in the previous quarter.
Advances grew 5 percent to Rs 2.41 trillion, driven by a 19 percent growth in commercial banking and 11.2 percent growth in the microfinance. Retail advances were flat, growing just 0.3 percent.
Total deposits rose 4.1 percent to Rs 2.76 trillion, led by strong traction in retail and branch banking. The Casa ratio improved to 32.8, up 200 bps.