Private sector lender Yes Bank on Wednesday reported a 38 per cent increase in net profit at Rs 400 crore for the first quarter, on the back of higher net interest income (NII) and non-interest income. The banks' NII grew 40 per cent, to Rs 659 crore and non-interest income rose 53 per cent, to Rs 442 crore.
The banks' gross non performing assets (NPA) and net NPA increased marginally on a sequential basis to 0.22 per cent and 0.03 per cent respectively from 0.20 per cent and 0.01 per cent.
The lender's provisions increased threefold to Rs 97 crore from Rs 30 crore a year ago. The bank however, attributed this to buffer provisions. "We had a one time gain in treasury operations this quarter, so we decided to have a buffer provision for the contingencies which might arise in future," said Rana Kapoor, managing director and chief executive officer, YES Bank.
The bank's stock on Wednesday, however, took a beating on the street. The stock closed 13 per cent down to Rs 383. The bank played down the issue, saying one shouldn't read much into the actions of some punters.
The loanbook of the bank grew by 24 per cent to Rs 47,898 crore while deposits grew 30 per cent to Rs 65,245 crore. Low cost current account savings account base improved to 20.2 per cent from 16.3 per cent a year ago. Kapoor said the bank would keep offering higher interest rates on savings accounts for now.
Capital adequacy ratio of the bank, under Basel–III norms, was 15.4 per cent with tier – I capital of 9.5 per cent.
The bank is looking to raise capital upto $ 500 million and is in talks with a couple of investors for the same, Kapoor said. "There is an opportunity for a private placement and we are talking to a couple of private equity companies...the issue could happen in the second half of this financial year, may be in October, and would reduce the stake of existing shareholders including promoters," said Kapoor.