Yes Bank Q2 net up 110% at Rs 45cr

Yes Bank, the newest private sector bank, today reported a 110% year-on-year increase in its net profit in the quarter ended September 30, 2007, on strong growth in interest as well as non-interest income.

The bank's net profit in Q2FY08 increased to Rs 45.28 crore from Rs 21.49 crore in Q2FY07. The bank's total income jumped by 128.5% to Rs 379.38 crore against Rs 166.01 crore. "This quarter, we have seen a good mix of non-interest income and interest income. The bank's net interest margin has improved to 2.9% from 2.3%,'' said Rana Kapoor, MD and CEO, Yes Bank.

The bank's advances and deposits portfolio grew by 101.5% to Rs 7,515.90 crore and 129.3% to Rs 9,930.20 crore respectively. Of the total advances portfolio, 65% constitutes of loans to large corporates and balance 27% is to small and medium enterprises and only about 1% is retail loans. On the deposits side, 15% is current and saving accounts while the balance is a mix of corporate and SME deposits. The cost of funds has dipped by 90 basis point to 8.40% against 9.30%.

"We will continue to focus on building the branch infrastructure to get retail and SME business and we would need to build size and scale for our corporate business,'' added Kapoor. The bank's capital adequacy ratio stood at 13.02%.

The bank is planning to raise Rs 500 crore of tier I capital through qualified institutional placement of shares or private placement which would be completed latest by March 2008. This will lead to about 6% dilution in the existing shareholding.