YES Bank Profit Surges By 18.8% To Rs 430.21 crore For Q4FY14

YES Bank, India’s fourth largest private sector bank came out with its fourth quarter result today on April 23, 2014. The bank posted net profit of Rs 430.21 crore for Q4FY14, which is 18.8% more than what bank, recorded in the same quarter last year. This was better than what street was expecting of around Rs 400 crore. It is the other income, which forms around 15% of the total income that helped bank to beat the market expectation. It grew by 17.4% on yearly basis and was Rs 445.52 crore. Net interest income (NII), measured by difference between interest income and interest expended, saw modest growth of 12.8% on yearly basis and stood at Rs 719.59 crore for Q4FY14.

The asset quality of the bank improved for the quarter on sequential basis. On absolute basis gross non-performing assets (NPA) of the bank declined by 11% for Q4FY14 compared to Q3FY14 and stood at Rs 174.93 crore. Net NPA in the same duration declined by 38% and was at Rs 26.07 crore for the Q4FY14. As proportion to gross and net advances the gross and net NPA declined by 8 basis points and 3 basis points respectively. The gross NPA and net NPA of the bank for the quarter ended March 2014 stood at 0.31% and 0.05% respectively. Even the total restructured advances stand at Rs 100.9 crore at March 31, 2014 which was at Rs 144.2 crore at the end of March 2013.  As proportion to its assets it has come down by 13 basis points and stood at 0.18% at the end of Q4FY14.

The board of the bank has also recommended dividend of Rs 8 per share for FY14, which gives yield of 1.8% at CMP of bank’s shares that closed at Rs 441.5 up by 1.8% from its previous close.

The bank’s share are currently trading at price to book value of 2.2 times, which is looking attractive at the growth demonstrated by the bank and improving asset quality that has been Achilles Heels for the entire banking sector  for a while now.