Yes Bank Q2 net profit rises 75%

Yes Bank Q2 net profit rises 75%
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First Published: Wed, Oct 21 2009. 10 21 PM IST
Updated: Wed, Oct 21 2009. 10 21 PM IST
Mumbai: Private sector lender Yes Bank Ltd’s profit surged 75% for the second quarter, driven by other income, but analysts were disappointed over its net interest income.
Its net profit rose to Rs111.71 crore for the September quarter, against Rs63.6 crore a year ago. Other income, which includes items such as commissions from guarantees and financial advisory fees, jumped 88% to Rs151.15 crore.
Yes Bank’s net interest income, a key measure of performance for a lender, grew 30.5% to Rs159.9 crore in the quarter on strong growth in advances and investments, but fell short of market estimates.
“The bank, in the first quarter of financial year 2010, had reported a higher net interest income of Rs163 crore,” said a banking analyst with a Mumbai brokerage, who did not want to be identified.
Yes Bank’s shares on the Bombay Stock Exchange lost 3.82% on Wednesday to end at Rs244.20 each. The Sensex fell 1.24% to 17,009.17 points.
“The dip in net interest income was on account of a Rs16 crore charge borne by the bank for settlement arising from interest swap business,” said Rajat Monga, chief financial officer, Yes Bank.
“The bank has seen improvement in non-performing loans and is well capitalized to support growth,” he said. “The bank has shareholders’ approval to raise funds up to $250 million (Rs1,160 crore) though qualified institutional placement.”
Yes Bank’s net non-performing loans declined to 0.08% in the second quarter from 0.15% a year earlier.
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First Published: Wed, Oct 21 2009. 10 21 PM IST
More Topics: Company Results | Yes Bank | Earnings | Income | Loan |