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Yes Bank
For 1QFY2012, Yes Bank reported a strong performance with net profit growth of 38.2%
yoy (6.2% qoq) to `216cr, marginally above our estimate of `212cr. Profit growth was
driven by sequentially stable NIMs and a sharp drop in provisioning expenses (due to
write-back of `15cr), which offset the lower-than-expected non-interest income.
During the quarter, the bank seemed to have moderated its balance sheet growth to
maintain NIMs, as evident from the sequential decline in advances of 3.7%. Consequently,
deposit accretion also declined by 5.1% qoq. CASA deposits continued to grow at a brisk
pace of 49.8% yoy, leading to an improvement in CASA ratio to 10.9% from 10.5% in
1QFY2011. The bank surprised positively with sequentially stable NIMs at 2.8% on the
back of a 90bp rise in yield on advances, which offset the 70bp qoq increase in cost of
funds. Asset quality of the bank continued to be in a sweet spot, with gross and net NPA
ratios of 0.17% and 0.01%, respectively, coupled with provision coverage (excluding
technical write-offs) of 95.2%. Branch expansion plans were on track, with addition of 41
branches to take the network to 255 branches. The stock is trading at of 2.0x FY2013E
ABV. We maintain our Accumulate recommendation on the stock with a
target price of `353.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Yes Bank
For 1QFY2012, Yes Bank reported a strong performance with net profit growth of 38.2%
yoy (6.2% qoq) to `216cr, marginally above our estimate of `212cr. Profit growth was
driven by sequentially stable NIMs and a sharp drop in provisioning expenses (due to
write-back of `15cr), which offset the lower-than-expected non-interest income.
During the quarter, the bank seemed to have moderated its balance sheet growth to
maintain NIMs, as evident from the sequential decline in advances of 3.7%. Consequently,
deposit accretion also declined by 5.1% qoq. CASA deposits continued to grow at a brisk
pace of 49.8% yoy, leading to an improvement in CASA ratio to 10.9% from 10.5% in
1QFY2011. The bank surprised positively with sequentially stable NIMs at 2.8% on the
back of a 90bp rise in yield on advances, which offset the 70bp qoq increase in cost of
funds. Asset quality of the bank continued to be in a sweet spot, with gross and net NPA
ratios of 0.17% and 0.01%, respectively, coupled with provision coverage (excluding
technical write-offs) of 95.2%. Branch expansion plans were on track, with addition of 41
branches to take the network to 255 branches. The stock is trading at of 2.0x FY2013E
ABV. We maintain our Accumulate recommendation on the stock with a
target price of `353.
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