Private sector lender Yes Bank today reported 30.5 per cent jump in net profit to Rs 1,260.36 crore for the first quarter ended on June 30, 2018, on the account of higher income.
Total income of the bank jumped to Rs 8,272.18 crore in the April-June quarter, up 42.96 per cent from Rs 5,785.96 crore in the same quarter of 2017-18, the private bank said in a statement.
However, provisions for bad loans and contingencies more than doubled to Rs 625.65 crore in the June quarter from Rs 285.78 crore in the year ago period.
The increase in provisions was on account of rise in gross non-performing assets (NPAs) to 1.31 per cent of advances as on June 30, 2018, against 0.97 per cent as on June 30, 2017.
At the same time, net NPAs were up to 0.59 per cent of net advances on June 30, 2018, from 0.39 per cent at the end of the first quarter of 2017-18.
In the second list of stressed assets referred to NCLT, the bank has total exposure of Rs 654.7 crore across seven accounts.
Entire Funded exposure from the above, aggregating to Rs 568.0 crore (across three accounts), is classified as NPA and has provision coverage of 43 per cent, it said.
Yes Bank reported 22.7 per cent growth in net interest income to Rs 2,219.1 crore in the first quarter while its non-interest income grew by 49.6 per cent year-on-year to Rs 1,694.1 crore.
"The growth has been well segmented...particularly retail business which grew 105 per cent year-on-year taking retail banking proportion in total advances to 14 per cent. The exponential growth momentum in retail...is further expected to increase granularity in the bank's asset and liabilities over the quarters to come," Yes Bank Managing Director & CEO Rana Kapoor said.
NIM, a key parameter to gauge profitability of a bank, was at 3.3 per cent during the reported quarter.
The bank has also received approval from SEBI to commence its mutual fund business which will complement and further augment bank's retail liabilities and wealth management product offerings, he said.
The other key highlight of the quarter was bank's continued resilience in asset quality and resolution capabilities as demonstrated through recoveries in NPA and security receipts book resulting in decline in total stressed assets to 1.52 per cent aggregate.
Total capital adequacy stood at 17.3 per cent with total capital funds at Rs 46,983.7 crore. Tier I Ratio and CET I ratio healthy at 12.8 per cent and 9.5 per cent respectively.
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