YES Bank Q2 net up 30% to Rs 306 cr, stock rises

Private sector lender YES Bank 's net profit grew by 30.2 percent year-on-year - in-line with expectations - to Rs 306 crore in the quarter ended September 2012, helped by fall in non-performing assets.

Net interest income too increased 35.75 percent - slightly above forecast - to Rs 524 crore from Rs 386 crore during the same period due to sustained growth in advances and investments coupled with steady net interest margin of 2.9 percent.

Analysts on an average had expected net profit at Rs 300 crore and net interest income of Rs 499 crore for the quarter.

Net interest margin improved marginally to 2.9 percent in the July-September quarter of current financial year as against 2.8 percent in the previous quarter.

Gross non-performing assets (NPAs) fell by 4 basis points to 0.24 percent versus 0.28 percent and even net NPAs declined to 0.05 percent as against 0.06 percent QoQ.

Capital adequacy ratio - the ratio bank's capital to its risk assets - grew by 100 basis points QoQ to 17.5% for the quarter.

The bank made provisions of Rs 31.73 crore in the quarter, which was marginally higher compared to Rs 30.01 crore in April-June quarter.

Advances grew by 22.9 percent YoY to Rs 42,019.3 crore as on September 30, 2012 while deposits rose by 18.6 percent to Rs 52,290.8 crore during the quarter.

"Current and savings account (CASA) deposits grew by 86.7 percent YoY to Rs 9,034.1 crore taking the CASA ratio to 17.3% as at September 30, 2012 up from 11 percent as of September 30, 2011. The bank continues to demonstrate increased traction in CASA on the back of enhanced savings rate offerings and improvements in productivity," the bank said in a press release.

Yes Bank added 19 branches during the quarter, taking the total branch count to 400. It added 52 ATMs to its network, taking the total count to 694 ATMs as on September 30, 2012.

At 11:28 hours IST, the share price increased 1.69 percent to Rs 393.60 on the Bombay Stock Exchange.

Source: www.moneycontrol.com

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Gaurav Agarwal 

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DENIP Consultants Pvt Ltd