 "YES BANK House")
India's Yes Bank reported a bigger-than-expected rise in net profit for the January-March quarter on Saturday, helped by a drop in loan-loss provisions and higher non-interest income.
The Mumbai-based private lender's standalone net profit more than doubled to Rs 452 crore for the financial fourth quarter from Rs 202 crore in the same period a year earlier.
That exceeded analysts' average forecast of Rs 341 crore, according to LSEG data.
Provisions and contingencies, or funds kept aside for potential bad loans, fell to Rs 471 crore from Rs 618 crore.
Yes Bank had set aside more money in the year-earlier quarter after transferring bad loans to private equity firm J.C.
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Flowers.
Its gross non-performing asset ratio improved to 1.7 per cent at the end of March from 2 per cent at the end of December.
The bank's other income, the fees earned from providing non-lending services to customers rose 56.2 per cent on year.
Net interest income, the difference between the interest earned on loans and paid to depositors, rose 2.3 per cent to Rs 2,153 crore.
Net interest margin, a key profitability measure for banks, dropped to 2.4 per cent from 2.80 per cent a year earlier, and was flat on a quarterly basis.
Most Indian banks have been shoring up their deposit base amid tightened liquidity conditions in the banking system and healthy demand for loans. That has weighed on their lending margins.
Yes Bank's loans grew 12.1 per cent on year, while deposits rose more than 22 per cent.
