Net interest margin remained stable at 2.9%, while current account savings accounts (Casa) improved to 17.3% of total deposits.
Yes Bank’s second-quarter net profit jumped 30.2% to Rs306.1 crore, riding on loans and fee income. Net interest income surged 35.9% to Rs524.2 crore, while non-interest income grew 29.3% to Rs276.8 crore, the bank said.
Net interest margin remained stable at 2.9%, while current account savings accounts (Casa) improved to 17.3% of total deposits. The bank expects Casa to be about 20% by the end of this year fiscal year.
Chief executive officer Rana Kapoor said business confidence has gone up following the reforms agenda announced by the government few months back, and some of the stress sectors were showing improvements. “At the same time, we cannot throw caution to the wind and in next six months we need to be more prudent in risk management,” he added.
The mid-sized private lender said it had provided for almost 80% of its total unsecured exposure to an unnamed, stressed corporate in the second quarter.
This is believed to be cash-strapped Deccan Chronicle Holdings/Deccan Chargers. The bank said unsecured loans made up for about half of the total Rs120 crore of loans outstanding from this account. The bank also revealed it had some exposure to a troubled wind energy company – said to be Suzlon Energy — but played down any danger, saying it was a very small member of the consortium, and the loan was fully secured.
Kapoor said the bank received board approval to foray into the mutual funds business on Tuesday, and would approach the Reserve Bank of India and Securities and Exchange Board of India (Sebi) for licence. The decision is yet another move by the bank to boost its retail offering.
Last month, the bank received a retail equities broking license from RBI, and is expected to launch operations next financial year.
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