Private sector lender YES Bank plans to raise Rs 1,500 crore of debt in the current fiscal, which will help the lender fuel its business growth, a top bank official said here today.
"We should raise Rs 1,500 crore of upper tier II and lower tier II capital by March, 2011," YES Bank Managing Director and CEO Rana Kapoor told PTI on the sidelines of a press meet here today.
The money will be raised for funding infrastructure growth and agri growth, Kapoor said, adding that it would also provide an opportunity to the bank to provide long-term loans to infrastructure companies.
Asked on any equity-raising plans, Kapoor said, "Our core capital position is quite healthy. We have already raised $225-million in January, so we don't need money at least for one year."
YES Bank today reported a growth of 56.26 per cent in net profit to Rs 156.4 crore for the quarter ended June 30 on the back of good credit growth and improved margins. The bank had posted a net profit of Rs 100.1-crore during the corresponding quarter of the previous fiscal.
The bank also reported an increase of 28.38 per cent in total income during the first quarter to Rs 883.03 crore, against Rs 687.85-crore during the year-ago period.
"The bank has consistently achieved record profits andfor the first time achieved an over Rs 150 crore net profit for the quarter ended June 30, 2010, on the back of a strong credit growth of 107.2 per cent Y-o-Y and steady margins, with net interest margins (NIMs) stable at 3.1 per cent," Kapoor said.
YES Bank recorded a more than two-fold jump in its total advances during the quarter ended June 30 to Rs 26,256.8 crore from Rs 12,670.5 crore during the same quarter last year.
Its total deposits climbed steeply by over 97 per cent to Rs 30,238.7 crore during the first quarter of this fiscal, against Rs 15,342.3 crore during the corresponding period of 2009-10.
The private bank's net interest income (NII) was Rs 262.1 crore for the three months ended June 30, a rise of 67.16 per cent over the figure of Rs 156.8 crore reported during the year-ago quarter.
The bank continued to maintain minimum net NPAs. While gross NPAs reduced by 25 bps Y-o-Y to 0.23 per cent, the net NPAs reduced by 20 bps to 0.04 per cent. Gross NPAs and net NPAs were at 0.27 per cent and 0.06 per cent, respectively, in FY'10.
The bank has received 91 new branch licenses and plans to open 100 new branches across India to take its branch network strength to 250 within the next one year.
"I believe that this incremental branch expansion is a significant organisational imperative for the bank's next phase of growth Version 2.0 that will further propel retail/SME banking initiatives and provide further acceleration in building our CASA and fixed deposits granularly," Kapoor said.
