YES Bank share price rallies 11% intraday as Q4 profit beats estimates

YES Bank share price spiked 11 per cent in intraday trade on Thursday after the private sector lender reported a 29 per cent jump in standalone net profit at Rs 1,179.44 crore in the March quarter of financial year 2017-18. The bank had logged a net profit of Rs 914.12 crore during January-March of 2016-17.  Reacting to the numbers, the YES Bank share price surged 11 per cent to Rs 361.20. The stock settled at Rs 352.05, up 8.23 per cent on the BSE and was the top gainer on Sensex and Nifty. 

The YES Bank's board recommended a dividend of Rs 2.70 per share or 135 per cent per share for the year ended March 31, 2018, subject to approval of shareholders.

YES Bank's asset quality improved with the gross non-performing assets (NPAs) slipping to 1.28 per cent of the gross advances as on March 31, 2018 from 1.52 per cent at the end of 2016-17.

In absolute terms, gross NPAs or bad loans stood at Rs 2,626.80 crore by end of March 2018 as against Rs 2,016.80 crore by the end of the preceding year.

Net NPAs were 0.64 per cent of the net advances at Rs 1,312.75 crore, down from 0.81 per cent at Rs 1,072.27 crore at the end of March 2017.

YES Bank's total income grew 27.8 per cent to Rs 7,163.95 crore as against Rs 5,606.38 crore in the same quarter of 2016-17.  The net interest income was up 31.4 per cent at Rs 2,154.20 crore and non-interest income increased 13 per cent to Rs 1,421 crore during the reported quarter.

The net interest margin (NIM) stood at 3.4 per cent in March quarter, down from 3.6 per cent in the year-ago period.

The private sector lender's exposure to the gems and jewellery sector reduced to come in at 1.4 per cent as on March 31, 2018, down from 1.6 per cent as on December 31, 2017.

For iron and steel sector it remained static at 2 per cent, for telecom it came down to 2.2 per cent (March 2018) from 2.3 per cent (December 2017) while for non-renewable electricity generation it stood at 2.7 per cent from 3.4 per cent.

Overall, there was a sequential fall in exposure to sensitive sectors at 8.3 per cent by end of March 2018 from 9.3 per cent at December-end 2017.