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