Mumbai: Private sector lender Yes Bank Ltd on Wednesday reported double the net profit from a year ago, beating analyst estimates, as it improved margins and grew its overall business.
The lender posted a net profit of Rs64.5 crore for the March quarter on a total income of Rs494 crore. A Reuters estimate had forecast a net profit of Rs55 crore. Net interest margin for the quarter improved to 3.06% against 2.6% a year ago, managing director and chief executive officer Rana Kapoor told reporters.
Non-interest income contributed about 51% to the bank’s total income, while financial advisory business contributed about 28% to its total income, Kapoor said.
The bank has put on hold its plans to hive off its investment banking division into a separate subsidiary, he added.
“As far as carve-out is concerned, it is on hold for the moment,” he said, citing uncertain market conditions.
The bank’s deposit base as of 31 March increased to Rs13,273 crore against Rs8,220 crore a year earlier, while outstanding loans grew to Rs9,430 crore compared with Rs6,290 crore a year earlier.
Yes Bank has not faced any delinquencies on a mark-to-market (MTM) basis in its derivatives transactions, Kapoor said. “We don’t have any delinquency in our derivatives portfolio,” he said.
The bank has made a provision of Rs22.8 crore, he said.
“What we believe is that in the market environment in which we are operating, we have made a contingent credit provision of Rs170 million which is the number we’ve set aside for any future contingencies without any actual losses,” Kapoor said.
Yes Bank has about 130 foreign exchange clients and about 70% of its MTM exposure is to large corporates while the balance is to mid-sized corporates, he said.
Shares of the bank ended 4.65% up at Rs169.75 in a firm Mumbai market.