MUMBAI: Slight improvement in margins, stable asset quality, lower interest expense and a healthy growth in other income lifted the bottom line of the mid sized private sector lender Yes Bank by 18.34 percent to Rs 654 crore in the September quarter as against Rs 553 it had booked in the year-ago period.
Indicating mixed core banking performance, the bank in which the Japanese financial powerhouse SMBC owns 24.99 percent, making it the single largest shareholder now, said while the core net interest income declined 3 percent to Rs 2,301 crore in the reporting three months period, the key profitability metric net interest margin improved to 2.5 percent marginally up from 2.4 percent in the year ago period. This helped the bank log in an 18.34 percent growth in net income.
However, the bank said Saturday that its net interest income declined 3 percent on-year to Rs 2,300.9 crore, reflecting competitive lending environment. Total income for the quarter stood at Rs 9,023.2 crore, down 1.2 percent from the year-ago period, the bank said.
Asset quality remained broadly stable with the gross non-performing assets rising 4.3 percent on-year to Rs 4,055.3 crore, while the GNPA was steady at 1.6 percent, unchanged from a year earlier.
Provisions rose 41 percent on-year to Rs 419 crore during the quarter, indicating higher provisioning requirements even as slippages remained contained.