Yes Bank releases Q2 earnings – Reports 25% profit growth

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Yes Bank released its second quarter earnings report on Thursday reporting a year-over-year (YoY) growth of 25%.

Yes Bank FY18-Q2 earnings
Yes Bank reports 25% growth in Q2 FY18

The private sector lender gained a net profit of Rs.1,002.70 crore for the July to September quarter of 2017-18, as against the previous year’s profit of Rs.801.54 crore.

The bank’s net interest income (NII) rose 33.5% to Rs.1,885.1 crore in the quarter, while its total reported income is Rs.6,048.78.

It’s operating income also increased by 37.6% to Rs.1,906.7 crore along with its non-interest income, which jumped by 35.4% to Rs.1,248.4 crore. Net interest margin (NIM) was also on rise by 3.7% as against 3.4%, the previous year.

Concurrently, Yes Bank’s bad loans also grew with its gross non-performing assets (GNPAs) increasing to Rs.2,720.34 crore, a 1.82% YoY growth from Rs.916.68 crore in Q2 2017. The net NPAs also increased to 1.04% of assets, against the previous period’s growth of 0.29%.  

Despite the increase in bad loans, the bank was able to report profits by achieving a steady growth in advances and the deposits in current account savings account (CASA) and also by increasing margins.

With the retail banking advances reporting a YoY growth of 78%, which is 11.4% of the bank’s outstanding book, and the CASA accretion witnessing steady momentum, the bank is positive about achieving its target of maintaining 40% CASA ratio by September 2018.

Further, the provision and contingencies of the bank in the second quarter rose to Rs.447.06 crore from Rs.161.67 crore of the previous period.

Read more here.

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