YES Bank posted a strong performance for the March quarter, with its standalone net profit jumping 63.3% year-on-year to Rs 738 crore. The private sector lender also saw a 5.7% rise in net interest income (NII), which came in at Rs 2,276.3 crore — both figures beating market expectations.
The bank’s total interest income grew by 2.3% YoY to Rs 7,616 crore during the quarter, reflecting steady growth in its core lending business. On the asset quality front, YES Bank showed further improvement, with its net non-performing assets (NPA) ratio falling to 0.3%, down from 0.5% in the previous quarter.
Net interest income, the difference between the interest earned on loans and paid to depositors, rose 5.7% to 22.76 billion rupees. Its other income, including fees, commissions and interest earned traditional interest-based activities, rose 11% to 15.67 billion rupees. Its loans grew 8.1% on year, while deposits rose 6.8%.
Net interest margin, a key profitability measure, was 2.50%, up from 2.40% a year earlier and in the previous three months. Analysts expect banks’ net interest margins to be under pressure in the coming quarters following the 50-basis-points rate cut by the Reserve Bank of India since February. That is because the pass-through to loan rates happens faster compared to deposits.
Shares of Yes Bank closed 1.2% higher on Thursday ahead of the results.