Income growth spurs profit at Yes Bank

Yes Bank, the newest private sector bank, today reported a 110 per cent year-on-year increase in net profit in the quarter ended September 30 due to a strong growth in interest and non-interest income.

The bank's net profit increased to Rs 45.28 crore in the second quarter of 2007-08 from Rs 21.49 crore a year earlier. Its total income jumped by 128.5 per cent to Rs 379.38 crore against Rs 166.01 crore.

"We have seen a good mix of non-interest and interest income this quarter. The bank's net interest margin has improved to 2.9 per cent from 2.3 per cent,'' said Rana Kapoor, managing director and chief executive officer. 
 

STRONG NUMBERS Performance for second quarter ended September
In Rs crore	Yes Bank
	2006	2007	% chg
Interest earned	127.88	303.45	137.29
Other income	38.13	75.93	99.13
PBT	34.93	67.4	92.96
Net profit	21.49	45.28	110.7
CAR (%)	11.98	13.02
NPM (%)	16.8	14.92

The bank's advances and deposits portfolio grew by 101.5 per cent to Rs 7,515.90 crore and 129.3 per cent to Rs 9,930.20 crore respectively. Of the total advances portfolio, 65 per cent constitutes loans to large corporates, 27 per cent goes to small and medium enterprises and only about one per cent consists of retail loans.

On the deposits side, 15 per cent is current and saving accounts while the remaining is a mix of corporate and SME deposits. The cost of funds has dipped by 90 basis point to 8.40 per cent against 9.30 per cent.

"We will continue to focus on building the branch infrastructure to get retail and SME business and we would need to build size and scale for our corporate business,'' added Kapoor. The capital adequacy ratio stood at 13.02 per cent.

The bank is planning to raise Rs 500 crore of tier I capital through qualified institutional placement or private placement, which would be completed latest by March 2008. This would lead to a dilution of about 6 per cent in the bank's existing shareholding.