 "YES Bank Q1 net rises 10% to Rs 342 crore, net interest income up 8%")
Private sector lender YES Bank reported a 10 per cent year-on-year (YoY) growth in net profit at Rs 342.5 crore for the quarter ended June 30, as compared to Rs 311 crore during the same period of last year.
Profit growth was muted due to 106.2per cent rise provisions to Rs 360 crore from Rs 175 crore reported during the first quarter of the previous financial year. The bank had made a provision of Rs 202 crore in the Jan-March period.
The provision coverage ratio stood at 48.4 per cent in Q1 of FY24 against 62.3 per cent in the previous quarter.
Net interest income – the difference between interest earned and interest expended – grew by 8.1per cent to Rs 2,000 crore.
Non-interest income grew by 54 per cent YoY to Rs 1,141 crore. Net interest margin for the June quarter was 2.5 per cent, as compared to 2.8 per cent in the previous quarter and 2.4 per cent during the same period of last year.
The yield on assets was 10.1 per cent for Q1 against 10.2 per cent for the corresponding quarter of the previous year. The cost of fund was at 6.2 per cent against 5.9 per cent.
Loan grew by 7.4 per cent year on year to Rs 2 trillion as on June 30. The credit growth of the bank was much less than industry, which is growing over 15per cent . Retail loans were 61 per cent of total loans, as compared to 51 per cent last year.
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Deposits grew by 13.5 per cent to Rs 2.19 trillion, while the share of current and savings account deposits were at 29.4 per cent on June end as compared to 30.8 per cent on March end.
At the end of June 30, gross non-performing asset (gross NPA) ratio, as a percentage of gross advances, was 2.0 per cent. It improved marginally from 2.2 per cent in the previous quarter. The gross NPA was at 13.4 per cent a year ago.
Net NPA ratio was 1 per cent compared to 0.8 per cent in the previous quarter and 4.2 per cent a year ago.
"The focus of the bank is now firmly aligned towards improving the profitability and accelerating the momentum over the coming quarters, towards this, first, we will continue to work on improvement in NIMs and CASA ratio, secondly, 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,” Prashant Kumar, Managing Director and CEO at YES Bank said.