Mumbai: Private sector lender Yes Bank Ltd posted a 75% increase in net profit to Rs140 crore in the quarter ended 31 March, buoyed by loan growth and an increase in other income.

Yes Bank for the first time declared a 15% dividend to shareholders.

Net interest income rose 62.9% in the fourth quarter to Rs244.20 crore from Rs149.80 crore in the year earlier on account of a 78.9% growth in advances, which stood at Rs22,193.10 crore at the end of the fiscal year.

The yield on advances fell to 9.7% from 13% and the cost of funds to 6.3% from 8.8%. The net interest margin widened to 3.2% from 3%.

“The advances growth has come from commercial banking, lending to mid-corporate, retail, and small and medium enterprises," managing director and chief executive officer Rana Kapoor said.

Expansion plans: Yes Bank’s Kapoor says it plans to increase its branch network from 150 to 250 by June 2011. Kaushik Chakravorty / Mint

“We are in the process of rolling out our retail operations, which will focus on both secured and unsecured products in the consumer loans business, (besides) microfinance loans," Kapoor said. “All products, including education loans and credit cards, will be rolled out over the next two years."

The bank plans to increase its branch network from 150 to 250 by June 2011. “For this, the bank will have to incur a capex (capital expenditure) of around Rs60-75 crore," Kapoor said.

Also Read | Mark to Market | Yes Bank shows signs of strong momentum

The bank plans to raise money this fiscal, Kapoor said.

At the end of March, the bank’s capital adequacy ratio was 20.61%, while net non-performing loans stood at 0.06% against 0.68% at the end of the previous year.

Its restructured advances have declined by Rs54 crore, Kapoor said. Restructured loans stood at Rs80 crore as on 31 March, down from Rs134 crore at the end of December.

“There are no major surprises in the results," a banking analyst with a domestic brokerage said on condition of anonymity. “Yes Bank is predominantly a corporate bank and one will have to wait and watch to see how and when the retail business will contribute to the bank’s future income."