Yes Bank's shares gained over 9% on Monday morning after strong growth in profit and improving asset quality.

What Happened: Yes Bank in its Q2 results reported a 145.6% year-on-year increase in net profit to ₹553 crore from ₹225 crore in the previous year. The private lender's net interest income gained 14.3% to ₹2,200 crore. 

Net interest margin came in at 2.4% with operating profit increasing by 21% to ₹975 crore. The bank’s gross non-performing assets (NPA) declined to 1.6% from 2% in the previous quarter. The net non-performing assets also declined to 0.5% from 0.9% in the previous year.

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The lender’s strong results came after the Reserve Bank of India was reportedly looking for strategic owners over short-term financial investors for Yes Bank.  Mitsubishi UFJ Financial Group, SMBC and Emirates NBD are among the potential contenders for a majority stake.

In the September quarter’s shareholding pattern, the mutual fund’s shareholding pattern in the lender increased to 0.25% from 0.19%. The Shareholding of banks such as SBI, ICICI Bank, HDFC Bank, Kotak Mahindra Bank and Axis Bank remained unchanged.

Price Action: Shares of Yes Bank gained 9.34% to ₹21.29 on Monday morning. 

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