Yes Bank net profit jumps 30.2% to Rs 306 crhttps://indianexpress.com/article/news-archive/web/yes-bank-net-profit-jumps-30-2-to-rs-306-cr/

Yes Bank net profit jumps 30.2% to Rs 306 cr

The bank had a net profit of Rs 235.02 crore in July-September quarter of 2011.

Yes Bank today posted a 30.2 per cent rise in its net profit at Rs 306.1 crore in the September quarter on the back of good growth in core income and improvement in asset quality.

The private sector bank’s total income increased by 37 per cent to Rs 2,263.13 crore in July- September period,2012.

“The bank has shown sound growth in profit on the back of rise in net interest income (NII) and improvement in margins,” Yes Bank Managing Director and Chief Executive Rana Kapoor told reporters here.

The bank said it has received board approval for entering into mutual fund business and will soon apply for the regulatory approvals.

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“We have received the approval from the board for setting of an asset management company (AMC),for which we will soon approach regulators,” Kapoor said.

The bank has witnessed a 35.9 per cent rise in its NII to Rs 524.2 crore. Its net interest margin rose to 2.9 per cent from 2.8 per cent.

“We hope to increase our NIM to 3 per cent in the second half of the fiscal,” he said adding that this will be possible as the bank is witnessing traction in current account,savings account front.

Yes Bank said its Casa (Current Account,Savings Account) ratio improved to 17.3 per cent of the overall deposits due to its higher interest rate offering on the savings deposits.

“We hope to improve the Casa ratio to 20 per cent by the end of the fiscal,” Kapoor said.

The lender also witnessed improvement in its asset quality in the second quarter. While gross NPA improved to 0.24 percent from 0.28 per cent,net NPA marginally improved to 0.05 per cent from 0.06 per cent.

“We have not done any restructuring in the last quarter,” Kapoor said.

For the first half of this fiscal,the bank posted a 32.2 per cent rise in its net profit at Rs 596.2 crore compared to Rs 451.1 crore reported a year ago.

Advances witnessed a 22.9 per cent growth at Rs 42,019.3 crore,while deposits jumped 18.6 per cent to Rs 52,290.8 crore in the first half.

Yes Bank said it has a capital adequacy ratio of 17.5 per cent by the end of September with a tier-I capital of 9.5 per cent.

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Referring to retail broking licence received by the bank,Kapoor said it would complement retail product offerings and the bank may consider entering into this space through inorganic route.