Yes Bank Q1 profit jumps 31% to Rs 1260 cr with robust loan growth

Yes Bank Q1 profit jumps 31% to Rs 1260 cr with robust loan growth
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New Delhi, Jul 26: Private sector lender Yes Bank started off the year 2018-19 on a strong note with profit growth of 31 percent in June quarter but asset quality weakened.
Profit for the quarter stood at Rs 1,260.4 crore, which increased from Rs 965.52 crore in corresponding period last fiscal. The profitability was driven by NII, other income and operating income but higher provisions limited growth.
Net interest income during the quarter grew by 23 percent year-on-year to Rs 2,219.14 crore with robust loan growth of 53.4 percent but net interest margin contracted to 3.3 percent (from 3.7 percent in Q1FY18 and 3.4 percent in Q4FY18).
“Advances grew by 53.4 percent YoY to Rs 2,14,720.1 crore on the back of robust growth across corporate, IBU, MSME and retail businesses. Retail banking advances grew by 105.2 percent YoY to 14 percent of Advances (up from 10.5 percent as on June 30, 2017),” the bank said.
Other income (non-interest income) shot up 50 percent to Rs 1,694 crore and operating profit surged 44 percent to Rs 2,455 crore compared to same quarter last year. Tax expenses spiked 26 percent to Rs 568.7 crore YoY.
Asset quality weakened for the quarter ended June 2018 with gross non-performing assets (NPA) rising to 1.31 percent against 1.28 percent in previous quarter, though net NPA was lower at 0.59 percent versus 0.64 percent sequentially.
In absolute term, gross NPA increased 8 percent quarter-on-quarter to Rs 2,824.5 crore while net NPA declined 4 percent to Rs 1,262.6 crore QoQ.
Slippages for the quarter stood at Rs 560 crore, which increased compared to Rs 380.2 crore reported in the previous quarter.