Yes Bank Announces Q2FY14 results

YES Bank, India's fourth largest private sector bank announced its Q2FY14 results today. The net profit of the bank grew 21.3% to Rs 371.1 crore year on year. The Cost to Income ratio was 36.2% in Q2FY14 versus 39.5% in Q2FY13. The Net Interest Income (NII) for Q2FY14 increased by 28.2% year on year to Rs 672.1 crore. "Growth in NII was on account of a cautious and steady growth in advances and investments coupled with stable NIMs at 2.9%" the company said.

Non Interest Income grew to Rs 446.1 crore showing a year on year growth of 61.2%. The growth in Non Interest Income (NIM) is driven by continued growth across all the fee income streams i.e financial advisory, financial markets, transaction banking and retail banking fees. However noticeable factor is, financial markets included one-off gain of Rs 111.6 crore in this quarter due to MTM gains on interest rate swaps.

The Provision Coverage Ratio of the bank stood at 85.3%. During the quarter, the net depreciation on AFS/HFT bond portfolio (Corporate & G-sec) of the bank amounted to Rs. 112.6 crore. Also, the bank has transferred eligible SLR securities worth face value of Rs. 94 crore from AFS category to HTM category at book value with Rs. 0.33 crore of losses.

Gross Non Performing Advances as a proportion of Gross Advances was at 0.28% while Net Non Performing Advances as a proportion of Net Advances was at 0.04% for the quarter ended 30 September, 2013. Total Restructured Advances (excluding NPAs) stand at Rs. 125.5 crore as at September 30 which represents 0.26% of the Gross Advances down from 0.46% as on 30 September 2012. The bank delivered RoE of 23.1% and RoA of 1.5% for Q2FY14.

The Total Advances of the bank grew by 13.6% to Rs. 47717 crore while deposits rose by 29.2% to Rs. 67575.1 crore as on 30 September, 2013. Current and Savings Account (CASA) deposits grew by 52.5% to Rs. 13776 crore year on year taking the CASA ratio to 20.4% as compared to 17.3% in the corresponding quarter of last fiscal.

Commenting on the results and financial performance, Rana Kapoor, MD & CEO, Yes Bank said, "Yes  Bank has delivered a satisfactory quarter of financial performance in a challenging macro-economic environment. The bank has maintained robust asset quality retaining high specific provision coverage, while further adding to the reservoir of counter cyclical provisions".