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YES Bank today said its net profit for the quarter ended December 31, 2013 increased by 21.4% from a year earlier to Rs 415.6 crore as it made lower provisions and increased its earnings from non-interest income. Higher interest income, growth in advances and stable margin also contributed to the profit growth.
Net interest income, or the difference between interest income and interest expense, increased 13.9% from a year ago to Rs 665.4 crore during the three-month period. Net interest margin narrowed 10 basis points from a year earlier but was stable sequentially at 2.9% during October-December period.
The bank's non-interest income grew by 23.9% year-on-year to Rs 387.9 crore during the quarter. Higher fee income contributed to the growth in the private lender's non-interest income.
"YES Bank has delivered a satisfactory quarter of financial performance despite a challenging economic environment. During this year YES Bank has further invested in its branch network, which is generating increasing granular and CASA (current account savings account) deposits. The bank has maintained net interest margin and delivered consistent RoA (return on asset) and RoE (return on equity) despite the tightening interest rate environment," Rana Kapoor, managing director and chief executive of the bank, said in his post-earnings comments.
The bank cut its provisions sharply to Rs 13.3 crore during October-December quarter from Rs 56.7 crore in the corresponding period of last year. This was despite deterioration in its asset quality.
Gross non-performing asset ratio increased by 22 basis points from a year earlier to 0.39%, while net bad loan ratio deteriorated by 4 basis points on a year-on-year basis to 0.08% at the end of December, 2013. Total restructured advances were at Rs 107.2 crore at the end of the quarter. There were no fresh loan restructurings during the three month period.
Total advances grew by 14.7% year-on-year to Rs 50,293 crore. Corporate and institutional banking accounted for 68% of the customer assets portfolio, commercial banking accounted for 14.7%, while retail banking (including medium and small enterprises) had the remaining 17.3% share.
Total deposits were up by 20.7% from a year earlier at Rs 68,060 crore. CASA deposits increased 37.8% on a year-on-year basis improving the CASA ratio to 20.9 per at the end of December, 2013.
The bank closed the quarter with a capital adequacy ratio of 16.1% as per Basel III norms.
