 "Expecting growth from retail, SME lending: Yes Bank")
Yes Bank is expecting good growth from retail and SME lending business in the current financial year that will help improve the risk profile of the country's fourth largest private sector lender, a senior official said.
"With improving stability in currency and the macro environment, the bank is well positioned to grow its lending book, especially for retail and SME sector," said Jaideep Iyer, deputy chief financial officer of Yes Bank.
"The bank has navigated the current slowdown very well in terms of asset quality with gross non-performing assets and net non-performing assets being under control," Iyer told IANS.
The interest rate with cost of funds has decreased sequentially in the December quarter and also the impact of the RBI measures seem to be have overcome, he said.
"This has also resulted in sequentially improving NIMs (net interest margins). Yes Bank is celebrating 10 years and has been able to deliver consistent results across cycle," Iyer added.
The Bank posted an 18.8 % increase in March quarter profit to Rs.430.2 crore, helped by a healthy increase in non-interest income. It had profit of Rs.362.2 crore a year earlier during the same quarter.
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The core net interest income grew 12.8 % to Rs.719.6 crore on a 15.4 % jump in customer assets, while the net interest margin remained flat at 3 %.
Driven by transactional revenue and retail banking, non-interest income grew 17.4 % to Rs.445.5 crore for the quarter ended March 31, Yes Bank chief financial officer Rajat Monga had said last week while announcing the result.
For the full financial year 2013-14, net profit grew 24.4 % to Rs.1,617.78 crore from Rs.1,300.7 crore in the previous year.
Various brokerage houses, both domestic as well as foreign brokerages, are bullish on the stock and have reiterated positive view and most of them have a buy rating on the stock.
According to Iyer, the interest rate with cost of funds has decreased sequentially in the December quarter. The impact of the RBI measures seem to be have overcome. This has also resulted in sequentially improving NIMs.
The growth in the balance sheet is being led by loans, including retail and micro SME loans, thus improving the share of loans in the balance sheet as compared to investments. This will also provide fillip to margins going forward.