Yes Bank Q4 Net Rises 27%, Beats Estimates

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Private lender Yes Bank reported a 27.4 per cent growth in its net profit for the fourth quarter ended March 31, 2016, aided by a strong growth in its net interest income.

Yes Bank said its net profit in the March quarter stood at Rs. 702 crore as compared toRs. 551 crore a year ago.

Analysts polled by NDTV Profit expected the lender to post Rs. 682 crore net profit in the quarter.

Its net interest income (interest earned on loans minus interest given on deposits) rose 27.1 per cent to Rs. 1,241 crore during the March quarter.

The bank’s net interest margin or NIM rose to 3.4 per cent from 3.2 per cent a year earlier. NIM is the difference between the yield on advances and the cost of funds.

Yes Bank’s non-interest income also recorded a strong 36 per cent year-on-year growth of 36 per cent to Rs. 802.8 crore in the fourth quarter. A bank’s non-interest income includes earnings from fees/commission, trading in foreign exchange and gains on investments.

However, the bank’s asset quality showed a slight slippage in asset quality with net non-performing assets (NPA) as a percentage of advances rising to 0.29 per cent in the March quarter, up from 0.22 per cent in December quarter. The gross NPA rose to 0.76 per cent from 0.66 per cent.

Yes Bank’s provisioning for the quarter stood at Rs. 186.5 crore, up 47 per cent from a year earlier.

The lender said that there were no strategic debt restricting (SDR) and 5:25 refinancing during FY16. The SDR scheme allows banks to convert stressed loans into a majority equity holding. The 5/25 scheme at present allows banks to extend long-term loans of 20-25 years to match the cash flow of projects while refinancing them every five or seven years.

Commenting on the Q4 earnings, MD and CEO Rana Kapoor said: “Yes Bank continues to show resilience on all asset quality parameters with highly manageable credit costs in an extremely challenging year FY16. With RBI asset quality review (AQR) impact fully factored in, we remain well positioned to grow at a faster pace and acquire market share across retail, SME and corporate businesses in the backdrop of an improving macro and policy environment.”

Last year, following an asset quality review, the Reserve Bank of India had asked banks to make adequate provisions for stressed assets over the third and fourth quarters of FY16.

Analysts said that Yes Bank’s Q4 earnings were mostly in line with estimates. The bank also announced a dividend ofRs. 10 per share.

At 11.10 a.m., shares of Yes Bank were up 0.30 per cent amid choppy trade, outperforming the banking share index, Bank Nifty, which was down 0.40 per cent. The stock had hit a fresh 52-week high of Rs. 923 today in early trade.