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Yes Bank foresees growth from retail and SME lending
Yes Bank is foreseeing good growth from retail and SME lending business in the current financial year. It will help improve the risk profile of the country's fourth largest private sector lender, a senior official said.

"With improving stability in currency and the macro environment, the bank is well positioned to grow its lending book, especially for retail and SME sector," said Jaideep Iyer, deputy chief financial officer of Yes Bank, as reported by Business Standard.

The bank has navigated the current slowdown very well in terms of asset quality with gross non-performing assets and net non-performing assets being under control, Iyer added.

He further added that the interest rate with cost of funds has decreased sequentially in the December quarter and also the impact of the RBI measures seem to be have overcome. The bank's NIMs (net interest margins) has also resulted in sequentially improving manner. Yes Bank has been able to deliver consistent results across its life cycle and celebrating 10 years.

In March quarter, the Bank posted an 18.8 % increase profit to Rs.430.2 crore, helped by a healthy increase in non-interest income. Last year during the same quarter it had witnessed a profit of Rs.362.2 crore.

While the bank's core net interest income grew 12.8 % to Rs.719.6 crore on a 15.4 % jump in customer assets, the net interest margin remained flat at 3 %.

Last week while announcing the result, Yes Bank chief financial officer Rajat Monga had stated that bank's non-interest income grew 17.4 % to Rs.445.5 crore for the quarter ended March 31 and transactional revenue and retail banking have driven the growth.

Last year's net profit was Rs.1,300.7 and for the full financial year 2013-14, net profit grew 24.4 % to Rs.1,617.78 crore.

The growth in the balance sheet is being led by loans, including retail and micro SME loans, thus improving the share of loans in the balance sheet as compared to investments. This will also provide fillip to margins going forward.

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