Mumbai : A healthy growth in core interest income helped private sector Yes Bank report a 30 % growth in the September quarter net at Rs 482.5 crore even as its bad loans surged.
The core net interest income grew 27.4 % to Rs 856.4 crore, while non-interest income inched up 13.3 % at Rs 505.6 crore. Chief financial officer Rajat Monga said a gain of Rs 100 crore on interest rate swaps in a rising interest rate environment in Q1 last year has resulted in slower growth in non-interest income.
The bank was able to expand its net interest margins to 3.2 % from 2.9 % on rise in the low-cost Casa funds, which rose to 22.5 % from 20.46 % of the deposit base, he said, adding that higher proportion of the high yielding retail advances and recently-raised capital also helped expand NIM. Monga said the bank saw a 0.30 % slip in both the cost of funds and yield on advances, during the quarter.
On the base rate, he said there is not enough room to manoeuvre right now, even though the cost of funds has come down a bit, and added the bank is yet to see a shift in the deposit rates that are a pre-cursor to a review on the lending rates side. Unlike others like IndusInd bank and Kotak Mahindra Bank, which have decreased their savings bank account rates, Yes Bank is not considering any review, Monga said, adding, the bank is targeting to raise Rs 3,000 crore by issue of newly-created infra bonds by the end of the fiscal and will seek share-holder nod for the same.
On the asset quality front, there was an increase in the gross NPAs to Rs 224 crore or 0.36 % from Rs 132.1 crore or 0.28 %. Monga said the worst is over on asset quality trouble and there will be a stability, if not an improvement in the asset quality from here on.
