Buoyed by a 90 per cent growth in non-interest income, private sector lender Yes Bank reported a 75.6 per cent growth in net profit to Rs 111.7 crore for the quarter ended September 30 from Rs 63.6 crore in the corresponding quarter of the previous year.
Net interest income grew at a more sedate pace of 45 per cent to Rs 159.9 crore in the September quarter from Rs 122.6 crore in the corresponding period last year.
As a result, the ratio of non-interest income to total income rose to 48.7 per cent from 39.6 in the September 2008 quarter.
The non-interest revenue stream included financial markets income of Rs 49.6 crore and financial advisory income of Rs 56.3 crore. Transactional banking yielded Rs 35.3 crore while third-party distribution and retail fees accounted for the balance Rs 10.4 crore.
Net interest margin remained flat at 3.1 per cent on a quarter-on-quarter basis. According to the Group President (financial markets) and Chief Financial Officer, Rajat Monga, this was due to a fall in cost of funds and yield on advances.
The bank’s asset quality improved with gross non-performing assets falling from Rs 61.42 crore at the end of the June 2009 quarter to Rs 50.02 crore at the end of the September quarter.
As a consequence, provisions fell from Rs 45.53 in the June 2009 quarter to Rs 23.37 crore in the September 2009 quarter.
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The bank restructured Rs 45 crore of advances during the quarter. which constituted 0.28 per cent of the gross advances as on September 30. The lender’s total restructured advances now stand at Rs 156 crore, which is 0.96 per cent of total advances.
Yes Bank’s scrip fell 3.82 per cent on the Bombay Stock Exchange to end the day at Rs 244.20.