Yes Bank Q3 profit rises 25.07 percent
NEW DELHI: Yes Bank Ltd on Friday said net profit for the December quarter rose 25.07% as it earned more from advances and benefited from higher fees and commissions and trading income. Net profit for the quarter rose to Rs.675.74 crore from Rs.540.29 crore a year ago. Twenty-six analysts polled by Bloomberg had forecast a net profit of Rs.634.90 crore. Net interest income (NII) or the core income a bank earns by giving loans increased 27.28% to Rs.1,157 crore from Rs.909.02 crore. Non-interest income, including fees, commissions and treasury income, increased to Rs.746.07 crore from Rs.536.81 crore in the same period last year, a rise of 38.98%.
Gross non-performing assets rose by Rs.67.22 crore, or 13.7%, to Rs.558.57 crore at the end of the December quarter from Rs.491.35 crore in the previous quarter. Provisions and contingencies jumped 42.33% to Rs.147.94 crore from Rs.103.94 crore a quarter ago.
In December, the Reserve Bank of India (RBI) conducted an asset quality review across the banking sector, following which banks were asked to recognize visible stressed assets as non-performing assets (NPAs). The RBI also asked banks to make adequate provisions for these stressed assets over the third and fourth quarters of the current fiscal year. This could hit the profitability of some banks.
As a percentage of total loans, Yes Bank's gross NPAs rose to 0.66% at the end of the December quarter from 0.61% in the previous quarter and 0.42% in the year-ago quarter. Net NPAs were at 0.22% in the December quarter compared to 0.2% in the previous quarter and 0.1% in the same quarter last year. At 11.34am, Yes Bank was trading at Rs.695.80 on the BSE, up 3.3% from its previous close, while the benchmark Sensex index rose 0.8% to 24,665.66 points.