YES Bank Q4 profit jumps 34% on strong net interest income

YES Bank reported a 34 per cent increase in net profit to Rs 272 crore in the fourth quarter ended March 31, 2012, against Rs 203 crore in the corresponding year-ago period.

A robust 43 per cent growth in non-interest income at Rs 266 crore (Rs 187 crore in Q4 FY11) coupled with a 29 per cent increase in net interest income (NII) at Rs 448 crore (Rs 348.5 crore) boosted the bank's profit.

Net profit for the year ended March 31, 2012, also rose by 34 per cent to Rs 977 crore (Rs 727 crore). Net interest income grew 30 per cent at to Rs 1,616 crore (Rs 1,247 crore).

NII growth

The Managing Director and CEO, YES Bank, Mr Rana Kapoor, attributed the profitability to steady NII growth, and continued focus on revenue diversity — cross selling of financial products, financial advisory, transaction banking and retail banking fees — leading to strong non-interest income growth.

Savings accounts (SA) deposits increased by 206 per cent year-on-year and 108 per cent on a sequential basis.

CASA (Current and Savings Account deposits) ratio has improved by 2.4 per cent on a sequential basis. CAR (Capital Adequacy Ratio) was at 17.9 per cent with a Tier I ratio of 9.9 per cent as on March 31, 2012.

The advances grew by 10.5 per cent at Rs 37,989 crore (Rs 34,364 crore) as on March 31, 2012, while deposits growth slowed to 7 per cent at Rs 49,152 crore (Rs 45,939 crore).

The cost of funds rose to 9 per cent (8.8 per cent) in the year ended March 31, 2012.

YES Bank may raise $400-500 million at the end of the fiscal year, Mr Kapoor said.

The bank expects to increase its retail banking portfolio to 36 per cent of total advances by FY15 from 18 per cent in FY12, he added.

The shares of the bank ended higher by 1.86 per cent at Rs 366.40 per share on the Bombay Stock Exchange.

beena.parmar@thehindu.co.in