CHENNAI 10 BusinessLine BANKING FRIDAY • JANUARY 20 • 2017 QUICKLY Axis Bank net YES Bank net rises 31% in Q3 Aided by improved Advances increased 39 per cent y-o-y to ₹1,17,087 crore as at slumps 73% in Q3 net interest margins, December-end 2016 from says MD Rana Kapoor ₹84,396 crore as at December- Bad loan provisioning end 2015. OUR BUREAU Deposits were up 30.5 per cent rises, net interest Mumbai, January 19 to ₹1,32,376 crore (₹1,01,437 crore margin declines YES Bank has reported a 31 per as at December-end 2015). The cent increase in net profit to low-cost CASA (current account Paying up JPMorgan Chase announced an OUR BUREAU ₹883 crore in the third quarter and savings account) deposits agreement to settle a federal lawsuit that Mumbai, January 19 ended December 30, 2016, from increased to 33.3 per cent from accuses the bank of discriminating against Axis Bank’s net profit in the third ₹676 crore in the year-ago 26.6 per cent. minority borrowers by charging them $1,000 quarter of FY17 decreased 73 per period. crore). Gross non-performing assets more than equally qualified white customers. cent year-on year (y-o-y) to ₹580 In the reporting quarter, net Rana Kapoor, Managing Dir- as a proportion of gross ad- The lawsuit was settled for $55 million AFP crore on higher provisioning for interest income (the difference Rana Kapoor, MD & CEO, YES Bank ector & CEO, YES Bank, said vances edged up to 0.85 per cent bad loans. between interest earned and in- growth and profitability were from 0.66 per cent in the year- However, the bank’s loan book cost deposits or CASA (current terest expended) was up 30.3 per ing commission, exchange and driven by expansion in net in- ago quarter. Rupee down 5 paise to 68.13/$ and net interest income expan- and savings account) consti- cent year-on-year (y-o-y) to brokerage, profit from sale of in- terest margins to 3.5 per cent YES Bank shares closed at Mumbai, January 19 ded by 10 per cent and 4 per cent, tuted 48 per cent. ₹1,507.50 crore (₹1,157 crore in vestments, and other non-in- (from 3.4 per cent in the year-ago ₹1,347.15 apiece, up 0.06 per cent The rupee weakened further by five paise to respectively, the year-ago quarter). terest income, increased 34 per quarter), while maintaining over the previous close on the close at a one-week low of 68.13 against a Net interest income (NII) grew Bad loans Non-interest income, compris- cent y-o-y to ₹998 crore (₹746 healthy asset quality. BSE. resurgent dollar amid hawkish tone from the 4 per cent y-o-y to ₹4,334 crore in Gross non-performing assets US Federal Reserve. High volatility continued to Q3 FY17 (₹4,162 crore in Q3 FY16). (NPA) rose 354 basis points (bps) churn the market for the second day as The bank’s net interest margin y-o-y to 5.22 per cent while net investors waited for more clarity in an (NIM ) declined 36 basis points to NPAs rose 143 bps to 2.18 per cent. uncertain global scenario in the midst of 3.43 per cent (3.79 per cent in Q3 The bank’s capital adequacy confusing signals from the world’s major FY16). ratio (money set aside to absorb Continuing the steady run central banks. Consistent demand for the shocks from bad loans) as per dollar from importers weighed on the rupee. Balance sheet Basel-III norms stood at 16.03 per ments continues to be on a WX The bank has been able to However, better capital inflows and firm local The bank’s balance sheet size cent, up 213 bps y-o-y. Q3 COMMENT strong footing. Strong loan growth, grow its CASA deposits at over 40 equities helped the home currency regain (total assets) grew 15 per cent y- Axis Bank has a network of The new marginal cost of healthy profitability and per cent annually over the last some lost ground, a forex dealer said. PTI o-y to over ₹5.78 lakh crore. The 3,211 branches and 13,726 ATMs RADHIKA MERWIN funds-based lending rate (MCLR) stable asset quality, just five years. loan book grew 10 per cent to across the country. BL Research Bureau framework, introduced by the about sums up the bank’s In the December quarter, ₹3,47,175 crore. Of this, retail con- Despite challenges within the RBI last year, has helped the bank performance in the latest aided by the influx of deposits Bond yields, call rate rise tributed 43 per cent, corporate Nine-month performance sector, particularly post-demon- offer competitive rates and tap December quarter post-demonetisation, the bank Mumbai, January 19 44 per cent, and small and me- For the nine months ended etisation, YES Bank continued to into opportunities in the large grew its CASA by a robust 63 per Government bonds (G-Secs) continued to dium enterprises (SME) and oth- December 2016, Axis Bank’s net deliver steady performance corporate segment. The corpor- cent year-on-year. decline on selling pressure from banks and ers contributed the remaining 13 profit fell 73 per cent to ₹2,454 across parameters. ate book contributes the chunk In any case, YES Bank’s strong The net interest margin hence, corporates. The 7.61 per cent 10-year per cent. crore. NII for the period however, Strong loan growth, healthy — 68.9 per cent of total loans. return on equity (ROE) will con- improved to 3.5 per cent in the benchmark bond maturing in 2030 eased to Deposits grew 9.5 per cent to increased 9 per cent y-o-y to profitability and stable asset tinue to keep its growth in good December quarter, from 3.4 per ₹107.14 from ₹107.40, while its yield rose to over ₹3.7 lakh crore. Of this, low- ₹13,365 crore (₹12,280 crore). quality, just about sums up the Capital for growth stead. cent in the previous quarter. 6.79 per cent from 6.76 per cent. The overnight bank’s performance in the latest YES Bank’s robust growth had led The bank’s ROE, which has call money rate turned higher following strong December quarter. to concerns about the bank’s been in the 18-25 per cent range Asset quality demand from borrowing banks amid tight YES Bank has been delivering ability to raise the requisite cap- in the last couple of years, has Despite its higher corporate ex- liquidity in the system. It finished at 6 per cent year-on-year growth of 20-25 per ital to continue funding its kept the growth in capital intact posure and stellar growth in from Wednesday’s level of 5.80 per cent. PTI Federal Bank profit up 26% cent in loans for many quarters. growth in the coming quarters. through internal accretion. In loans, YES Bank’s asset quality The December quarter has not But the bank has raised ₹3,000 the December quarter, the ROE continues to be stable. In the SIB appoints additional director OUR BUREAU seen much deviation from the crore through Additional Tier-I stood at 22.3 per cent. December quarter, the bank’s Kochi, January 19 past trend; the loan growth has bonds during the December gross non-performing assets Kochi, January 19 Federal Bank has posted a 26 per only been stronger at 38.7 per quarter. Low-cost deposits stood at 0.85 per cent of loans, South Indian Bank has announced the cent growth in its net profit at cent, much higher than the This should help fund the Aside from the strong growth in lower than that of most private appointment of Achal Kumar Gupta as the new ₹205.65 crore in Q3 of FY17 com- muted 5 per cent growth at the bank’s growth for the next 12-18 loans, improving low-cost cur- banks. additional director. Gupta has over 40 years of pared with ₹162.72 crore in the system level as of December. months. The Tier-I capital stood rent account savings account Over the past five years, the experience in banking and finance, including corresponding period of the pre- The growth in the bank’s large at 12.2 per cent as of the Decem- (CASA) ratio continues to aid bank’s GNPA has been below 1 corporate credit and treasury management. vious fiscal. corporate, retail and SME seg- ber quarter. margin expansion. per cent of loans. The major posts held by him include Chief Operating profit increased General Manager (Corporate Accounts Group) 45.91 per cent to ₹474.90 crore of SBI, Managing Director of SBI Mutual Fund, from ₹325.48 crore in the year- Managing Director of State Bank of Patiala and ago period. Whole-time Director of IFCI. OUR BUREAU As on December 31, total busi- centage of total deposits, in- ness increased 27 per cent year- creased to 34.66 per cent from Lakshmi Vilas Bank profit jumps 70% Lloyd’s to open branch in India on-year (y-o-y) to ₹1,61,864.87 32.10 per cent at the end of the Mumbai, January 19 crore. Total deposits registered a corresponding period last year. Driven by lower cost of funds, stable net to tighten the systems and pro- advances increased to 2.78 per Lloyd’s, the specialist insurance and yearly growth of 23 per cent to The book value per share in- cesses,” said Parthasarathi cent from 2.70 per cent in the reinsurance market, has announced plans to ₹92,235.65 crore, and net ad- creased to ₹49.94 from ₹47.86.