Yes Bank reported a smaller-than-expected quarterly net profit, with a 10.3% increase to 3.43 billion rupees in the April-June quarter.

The bank set aside more money for ageing bad loans and security revenues, offsetting higher net interest income.

The bank expected bad loan recoveries and upgrades of around 50 billion rupees for the April-starting financial year.

Net interest income grew 8.1% to 20 billion rupees, and the bank’s net interest margin increased.

The bank expects 15%-20% credit and 20% deposit growth this fiscal year.