Yes Bank profit grows 44.7 percent as loan demand picks up

YES BANK LTD reported a 44.7% increase in fourth-quarter profit, bolstered by strengthening loan growth and stable asset quality across its operations in India. The private sector lender's standalone net profit rose to 10.7 billion rupees for the quarter ending March 31, up from 7.3 billion rupees in the corresponding period a year earlier. This financial performance follows a period of subdued growth, as credit demand among Indian lenders gained momentum in the latter half of the year, supported by consumption tax cuts and a revival in corporate lending. During the quarter, the bank's loans grew by 10.7% year-on-year, a significant acceleration from the 5.2% growth recorded in the previous quarter. This expansion was primarily driven by a pickup in corporate lending, while total deposits saw an increase of 12.1%. Net interest income, which measures the difference between interest earned on advances and interest paid on deposits, rose marginally to reach 76.5 billion rupees. The lender also reported improvements in its asset quality, particularly after facing previous stress in retail segments such as microfinance. Gross bad loans as a percentage of total loans fell to 1.3% at the end of March, compared to 1.5% at the end of December. Consequently, provisions set aside for potential bad loans decreased by 41% to 1.87 billion rupees.