Analyst reports said the net interest income will see a high double-digit growth
Private sector lender Yes Bank’s March quarter net profit is expected to rise 20 percent year-on-year to Rs 1,098.7 crore, helped by stable asset quality and a healthy growth in net interest income (NII), according to a Reuters poll of equity analysts.
Yes Bank will announce its fourth quarter earnings on Thursday.
The poll estimates net interest income (NII) – difference between interest earned and expended – to rise 25 percent to Rs 2,053.4 crore.
Edelweiss Research in an earnings report said asset quality trends at Yes Bank could be benign, keeping credit costs at guided level. It added that the growth through corporate, small and medium enterprises (SME) and retail segments would help them beat industry numbers.
The Reuters poll has estimated loan loss provisions at Rs 457 crore for Q4 FY18, an increase of 47 percent over the same quarter last fiscal.
Another report by Sharekhan said private banks such as Yes are expected to post faster than the system growth and gain market share from public sector banks.
Key things to watch out for:
- Asset quality and loan loss provisions
- Sale of loans to asset reconstruction companies and quantum
- Fee income growth