Yes Bank Q3 Net Jumps 31%, Beats Estimates

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Private sector lender Yes Bank reported better than estimated net profit for the October-December quarter on Thursday on the back of strong growth in its interest income and a decline in provisions.

Yes Bank’s net profit grew 31 per cent to Rs. 883 crore compared to Rs. 676 crore year-ago. Its net interest income, which is the excess of interest earned on advances over paid on deposits, grew 30 per cent to Rs. 1,508 crore.

Analysts polled by NDTV Profit had estimated its net profit at Rs. 822 crore, while the lender’s net interest income was seen growing to Rs. 1,496 crore.
“These are very good numbers under challenging circumstances. We remain positive on Yes Bank,” Gaurang Shah, head investment strategist at Geojit BNP Paribas Financial Services, told NDTV Profit.

Yes Bank’s non-interest income, which includes fee income and treasury income, also registered a robust growth of 34 per cent in Q3 at Rs. 998 crore, supporting its bottomline.

Yes Bank made a provision of Rs. 115 crore for stressed assets in Q3, which was 29 per cent lower than the Rs. 162 crore it provided in the September quarter.

The Mumbai-based private sector lender also reported improvement in its profitability as its net interest margin expanded to 3.5 per cent in Q3 from 3.4 per cent in the September quarter.

Meanwhile, asset quality of Yes Bank also remained stable. Its gross non-performing assets (GNPA) as a percentage of total advances rose to 0.85 per cent compared to 0.83 per cent in Q2. Its net non-performing assets, which is GNPA minus provisions, remained stable sequentially at 0.29 per cent.

As of 2.35 pm, Yes Bank shares were trading flat at Rs. 1,344.5 apiece, recovering from its intraday low of Rs. 1,332.35. In comparison, the banking sub-index of NSE was down 0.23 per cent.