MUMBAI: Private lender Yes Bank on Saturday reported a 10% rise in net profit to Rs 343 crore in the quarter ended June this year compared to Rs 311 crore in the same quarter previous year, mainly supported by healthy growth in non-interest income.
The company’s non-interest income soared 54% to Rs 1,141 crore during the quarter, while net interest income rose 8.1% to Rs 2,000 crore during the quarter.
Surge in provisions slowed the pace of growth in profit as the lender’s provisions and contingencies, net of recoveries made against loan accounts written off as bad, more than doubled to Rs 360 crore from Rs 175 crore a year earlier.
Lender’s asset quality showed substantial improvement as gross non-performing assets (NPAs) declined to 2% of gross advances at the end of the June quarter from 13.4% a year ago.
Similarly, net NPAs or bad loans declined to 1% against 4.2% in the year-ago period.
“With the focus of the Bank now firmly aligned towards improving the profitability of the franchise, over the coming quarters, we will continue to work on levers which further accelerate this momentum such as improvement in NIMs (Net Interest Margin) and CASA (Current Account Saving Account) Ratio, reducing the drag from legacy PSL requirements, further cross-sell and product penetration into our fast-expanding customer base, while continuing to maintain strict controls over costs,” said Prashant Kumar, managing director & chief executive officer, Yes Bank.
Advances grew 10%, of which retail advances jumped 31.3% and the SME book rose 24.1% and the mid-corporate book 28.9%, while the large corporate book contracted by 29%, taking the new sanctions and disbursement to Rs 24,730 crore.
The capital adequacy ratio of the bank also improved to 18.2% compared to 17.5% at the end of June 2022.