YES Bank Q2 profit jumps 31% to Rs 802 crore on rise in low cost deposits

Mumbai: Private sector lender YES Bank today reported a 31.3 percent jump in net profit to Rs 801.5 crore for the second quarter ended September 30. [caption id=“attachment_2526364” align=“alignleft” width=“380”]  Firstpost photo[/caption] The bank had recorded a net profit of Rs 610.4 crore in the corresponding quarter last fiscal, YES Bank said in a statement. The total income of the bank increased to Rs 4,982.23 crore during the quarter from Rs 3,995.34 crore in the same period of 2015-16. During the quarter, the gross Non-performing Assets (NPAs) increased to 0.83 percent from 0.61 percent last fiscal. At the same time, net NPA of the bank also rose to 0.29 percent from 0.20 percent. As a result, provisions (other than tax) and contingencies increased to Rs 161.67 crore as compared to Rs 103.94 crore in the same period a year ago. Commenting on the result, YES Bank MD Rana Kapoor said the bank achieved an important milestone with CASA ratio crossing 30 percent for the first time to 30.3 percent. “It demonstrates improving productivity and efficiency of our retail liabilities growth engines. Further, banks commitment towards building a strong retail franchise got a comprehensive push with the launch of credit cards during the quarter,” he said. The complete suite of retail product offerings will continue to provide accelerated momentum to the retail franchise, he added. Updating about the board meeting outcome, Yes Bank said it plans to raise Rs 10,000 crore by issuing debt on private placement basis along with USD 1 billion through QIP, which was deferred recently on technical grounds to fund its business expansion. The board has approved raising of fund by way of issuance of debt securities, including but not limited to non-convertible debentures, medium-term notes, bonds within the overall limit of Rs 10,000 crore in Indian rupee or in foreign currency, it said. Yes Bank will raise the Rs 10,000 crore amount in one or more tranches from domestic and/or overseas market. Also, reiterating on the approval granted to the Bank by its board in April, Yes Bank said it will raise funds by way of “qualified institutions placement (QIP) up to USD 1 billion in one or more tranches on such terms and conditions as may be decided by the capital raising committee of the board of directors.” Earlier in September, the Mumbai-based mid size lender had deferred its plans to raise USD 1 billion, citing extreme volatility in trading due to misinterpretation of new QIP guidelines. The bank had said in a statement that extreme trading volatility because of misinterpretation of new guidelines had prompted merchant bankers to advise deferment of the proposed QIP.