Mumbai, Jan. 15: Yes Bank today reported a 21.4 per cent increase in net profit at Rs 415.60 crore in the third quarter ended December, buoyed by a 13.9 per cent increase in net income at Rs 665.40 crore and lower provisioning.
Non-interest income rose 23.8 per cent to Rs 387.88 crore during the quarter.
Provisioning was down to Rs 13.29 crore from Rs 179.12 crore in the second quarter and Rs 56.68 crore in the same quarter a year ago.
However, net interest margin dropped marginally to 2.9 per cent from 3 per cent a year ago.
Operating profit rose 9.1 per cent to Rs 614.70 crore, driven by a stable growth in non-interest income.
Current and savings accounts (CASA) surged 37.8 per cent year-on-year to Rs 14,246.10 crore taking the CASA ratio to 20.9 per cent at the end of the third quarter, up from 18.3 per cent a year ago.
Gross non-performing advances as a proportion of gross advances stood at 0.39 per cent. Net non-performing assets as a proportion of net advances were at 0.08 per cent.
“Yes Bank reported a healthy operating performance during the quarter, which was ahead of our expectations.” said Vaibhav Agrawal, vice-president (research – banking) at Angel Broking.
Agrawal added, “The bank’s asset quality performance has been quite good so far, with credit costs contained well below the management guidance of 55-60 basis points for the year. The management had identified ‘adversely labelled assets’ at around 1-2 per cent of loan book (against which they already have provisions worth 0.4 per cent of advances). These assets remain vulnerable and could result in higher credit costs if they turn bad.”
The Yes Bank scrip today closed nearly 2 per cent higher. It ended at Rs 353.05, up 1.95 per cent, on the BSE.
During intra-day trade, it had gained 2.8 per cent to Rs 356.