YES Bank, the country's fourth-largest private sector lender, today reported a 29 per cent jump in net profit in its Q4 results for the last fiscal. Its net profit crossed Rs 1,179 crore in the quarter ended March 31, up from Rs 914 crore in the corresponding quarter last year.
Its asset quality has also improved. Although gross non-productive assets (NPAs) went up 23 per cent year-on-year (y-o-y) to Rs 2,626.8 crore, gross bad loans as a percentage of the bank's total loans have come down steadily. It stood at 1.28 per cent at March-end, compared to 1.72 per cent in the preceding quarter and 1.52 per cent in the year-ago period.
The bank's total income stood at Rs 7,163.9 crore in the quarter under review, up 9 per cent over the previous quarter and a 22 per cent jump y-o-y. Of this, interest earnings contributed a whopping Rs 5,742.9 crore. Net Interest Income grew by 31.4 per cent y-o-y (to Rs 2,154.2 crores) for Q4 FY18 while net interest margin (NIM) stood at a healthy 3.4 per cent.
YES Bank's capital adequacy ratio (CAR) of 18.4 per cent is also an improvement from 17 per cent in the corresponding period last year.
The bank made provisions worth Rs 399.64 crore in Q4, which is 5 per cent lower than the previous quarter but 22 per cent more than Q4 FY17.
"FY18 has been a landmark year in YES Bank's 'Large Bank Growth Phase' with the Bank crossing significant milestones in size, outreach & granularity while continuing to deliver on satisfactory earnings," said Rana Kapoor, Managing Director & CEO, YES Bank, commenting on the Q4 results.
He added that well segmented and granular growth across corporate, MSME and retail businesses has resulted in the bank's advances crossing Rs 2 lakh crores. "Further Bank's IBU (GIFT City) business continues to expand, with total assets crossing $2.5 billion within 3 years of operations. YES Bank also successfully completed its maiden MTN issuance of $600 million in the past quarter to support diversified funding for this growth," he said.
Celebrating these results, Yes Bank's share price spiked 8% in the past three hours, hitting a high of Rs 358 apiece before coming down to Rs 352.05 currently.
Incidentally, at the board meeting today, YES Bank's board of directors also approved dividend payout of Rs 2.7 per equity share, i.e. 135 per cent on equity shares of face value of Rs 2 each (fully paid up) for the financial year ended March 31, 2018. As per a regulatory filing, "the same shall be payable subject to approval of the shareholders at the ensuing Annual General Meeting of the Bank."
With Reuters inputs
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