NPAs spoil the show.
Private sector lender Yes Bank today said its net profit rose 24.20 per cent to Rs 80.11 crore during the fourth quarter of FY09 despite an eight-fold increase in gross non-performing assets (NPA).
Net interest income in the quarter rose 45.4 per cent to Rs 155.2 crore, as against Rs 160.7 crore in the year-ago period. However, its non-interest income declined 16.6 per cent, from Rs 107.6 crore in the quarter ended March 2008 to Rs 89.8 crore in the quarter under review.
Gross NPAs rose to Rs 84.93 crore during the quarter, as against Rs 10.57 crore last year. As a proportion of advances, gross NPAs were estimated at 0.68 per cent at the end of 2008-09, as against 0.11 per cent in the corresponding period in the previous year. Higher gross NPAs have resulted in a 40.93 per cent increase in non-tax provisions to Rs 32.19 crore.
| NPAs SPOIL THE SHOW | |||
| Rs crore | Quarter ended | ||
| Mar'08 | Mar'09 | %chg | |
| Interest earned | 386.73 | 566.31 | 46.4 |
| Interest expended | 280.00 | 411.09 | 46.8 |
| Net profit | 64.50 | 80.11 | 24.2 |
| Gross NPA | 10.57 | 84.93 | 703.5 |
| Net NPA | 8.46 | 41.16 | 386.5 |
Net NPAs also jumped nearly five times to Rs 41.16 crore at the end of the last financial year, as against Rs 8.46 crore in 2007-08. As a percentage of advances, it rose to 0.68 per cent at the end of March 2009 from 0.11 per cent in the previous year.
Yes Bank Chief Financial Officer, however, said that the NPA growth was over a small base. “We have only faced problems with two-three accounts on the corporate banking side.” The bank did not have any pending derivatives-related disputes and one of the clients had paid the disputed amount.
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During the year, the bank said that the gross yield on advances rose 130 basis points to 12.8 per cent, while the cost of funds rose 54 basis points to 9.02. As a result, net interest margin rose to 2.90 per cent, from 2.70 per cent in the previous year.
The bank’s net profit rose 51.9 per cent to Rs 303.8 crore during FY09, as against Rs 200 crore during the previous year.
Buoyed by Rs 558 crore raised by way of Tier-I and Tier-II capital during the fourth quarter, the bank’s capital adequacy ratio went up to 16.63 per cent at the end of March 2009, as against 13.64 per cent in the previous year.