Yes Bank quarterly net beats forecast

8220;Record profits were on the back of higher loan growth,resulting in higher interest income,8221; Rana Kapoor,its managing director and chief executive officer,said.

Loans rose 71.1 per cent on year in the December quarter,while net interest income rose 69.5 per cent to Rs 2.1 billion in the same period.

Its non-interest income comprising transaction banking,financial advisory and third party distribution of products rose 32.5 per cent on year.

8220;The results were largely on expected lines,8221; said Alpesh Mehta,analyst at Motilal Oswald.

8220;Profit was mostly led by rise in loans and expansion of margins.8221;

The bank8217;s cost of funds fell to 6.6 per cent from 9.6 per cent a year ago,helping net interest margins rise to 3.1 per cent,from 2.8 per cent a year ago. The bank8217;s non-performing assets as a proportion of net advances was at 0.9 per cent,compared to 0.15 per cent on year. The bank8217;s loan loss coverage ratio stood at 270 per cent.

The bank8217;s capital adequacy ratio was at 16.2 per cent.

At 12.14 p.m.,shares in the bank fell 2.45 per cent at Rs 277 in the Mumbai market that was up 0.1 per cent.