Yes Bank Q1 results: Private sector lender Yes Bank on Saturday reported a better-than-expected 46 per cent rise in its standalone net profit to Rs 502 crore, helped by a fall in provisions for credit losses and solid loan growth. The Mumbai-based private lender’s standalone net profit was Rs 343 crore in the same period last year. The bank’s provisions and contingencies, or money set aside for potential bad loans, fell 41 per cent to Rs 212 million. Its loans grew 14.7% year-on-year, while deposits rose 20.8%. Indian banks have consistently experienced good loan demand as economic growth is strong and urban consumer demand is high. However, margins remain under pressure as banks try to raise deposits to fund loan growth. Yes Bank’s net interest income, the difference between interest earned on loans and paid to depositors, rose 12% to Rs 2,244 crore. Net interest margin, a key measure of profitability, fell to 2.4% from 2.50% a year ago but has remained flat for the past three months. Gross non-performing asset ratio stood at 1.7% at the end of April, unchanged from the end of the previous three months. Yes Bank shares closed 3.8% lower on Friday ahead of the results.
Yes Bank Q1 results: Loans grew just 14.7% year-on-year
