Yes Bank Q1 Results: Private sector lender Yes Bank on Saturday reported a bigger-than-expected 46 per cent jump in standalone net profit to Rs 502 Crore, helped by a drop in loan-loss provisions and robust loan growth.
The Mumbai-based private lender’s standalone net profit had stood at Rs 343 crore in the corresponding period last year.
Yes Bank’s provisions and contingencies, or funds kept aside for potential bad loans, fell 41 per cent to Rs 212 crore.
Its loans grew 14.7% on year, while deposits rose 20.8%.
Indian banks have consistently experienced healthy demand for loans as economic growth has been strong and urban consumption demand high. Banks, however, are trying to raise deposits to fund the credit growth that has kept margins under pressure.
Yes Bank’s net interest income, the difference between the interest earned on loans and paid to depositors, rose 12% to Rs 2,244 crore.
The net interest margin, a key profitability measure, was down to 2.4% from 2.50% a year earlier but was flat from the previous three months.
The gross non-performing asset ratio was 1.7% at end of April, flat from the end of the previous three months.
Shares of Yes Bank closed 3.8% lower on Friday ahead of the results.
(With inputs from Agencies)
