Private sector lender YES Bank recorded a 74.8 per cent increase in net profit to Rs 140 crore for the quarter ended March 31, compared to Rs 80.1 crore a year ago, pertaining to strong growth in fee income and interest income.
Net interest income, or the difference between interest earned on loans and interest paid on deposits, was up 62.9 per cent to Rs 244.2 crore, from Rs 149.8 crore in the year-ago quarter.
Non-interest income grew 68.3 per cent to Rs 160.1 crore from Rs 95.1 crore in the year-ago quarter. Within non-interest income, the biggest contributor was fees from financial advisory, which nearly tripled to Rs 57.76 crore from Rs 20.3 crore.
Transaction banking and financial markets contributed Rs 43.2 and Rs 47.36 crore to non-interest income, respectively.
For the financial year 2009-10, the bank recorded a net profit of Rs 477.7 crore compared to Rs 303.8 crore in the previous year. The bank’s net interest margin (NIM) was 3.2 per cent for the quarter-end, compared to 3 per cent in the fourth quarter of the previous year.
The bank’s cost of deposits fell to 6.3 per cent in the quarter-end, compared to 8.8 per cent a year ago, while yield on advances fell from 13.0 per cent to 9.3 per cent over the same period. “We should be able to maintain NIMs at above 3 per cent,” said YES Bank Managing Director and CEO Rana Kapoor.
YES Bank’s loan book grew 79 per cent to Rs 22,193 crore in the year up to March 31, while deposits grew 65.7 per cent to Rs 26,7998 crore over the same period.
The bank expects to grow its loan book 40-45 per cent in 2010-11, said Kapoor. The bank has current account and savings account (Casa) deposits aggregating to Rs 2,818.2 crore as of March 31 and a Casa ratio of 10.5 per cent.
The bank is currently running pilots for retail secured and unsecured loans and will introduce retail products home loans, education loans and auto loans over the next two years.
It currently has 150 branches and plans to ramp up its branch network to 250 by June 2011. “We will be investing about Rs 60-75 crore in expanding our branch network,” said Kapoor.
