Yes Bank Q1 Profit Jumps 59%

Mumbai, Jul 19 (PTI) Private sector lender Yes Bank on Saturday reported a 59 per cent jump in its June quarter net profit to Rs 801 crore, helped by non-core income growth.

Its core net interest income grew 5.7 per cent to Rs 2,371 crore on the back of a 5 per cent growth in advances and a 0.10 per cent widening in the net interest margin at 2.5 per cent.

The other income jumped 46 per cent to Rs 1,752 crore, and was one of the major drivers of the profit growth. Treasury income was one of the key movers on this front; gains of investment were Rs 484 crore against Rs 32 crore losses in the year-ago period.

The bank's managing director and chief executive Prashant Kumar said the bank is cautious on the retail credit growth, where it does not wish to grow products offering it thin margins.


Kumar exuded confidence that the advances growth will accelerate in the rest of the year, and added that the bank is maintaining its loan growth target.

The gross slippages inched up to Rs 1,458 crore from Rs 1,223 crore in the quarter-ago period, and Kumar said there were two business accounts in the April-June period which are set to turn performing soon.

Kumar said he expects the 20 per cent stake buy by Japan's Sumitomo Mitsui Corporation Bank (SMBC) to be complete by September-end, but did not confirm if an application has been given by them to acquire another 5 per cent.

When asked about his own tenure at the bank and if he sees a role beyond the six-month extension granted by the RBI, Kumar declined to comment.

He maintained that the bank does not need a capital infusion for business growth, pointing to the overall capital adequacy of 16.2 per cent with the core buffer at 14 per cent.