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S t r e n g t h e n i n g r e t a i l p r e s e n c e …
Yes Bank registered healthy PAT growth of 32.9% YoY to | 254.1 crore (I
direct estimate: | 237.6 crore) on the back of a strong all-round
performance. NII surged 32.3% YoY to | 427.6 crore as it maintained NIM
YoY at 2.8% (10 bps QoQ dip). Non-interest income grew a healthy 30.8%
YoY to | 211.4 crore. C/I ratio was stable at 37.6%. The bank continues to
have best in class asset quality as it reported GNPA ratio at 0.2% and
NNPA ratio at 0.04% with PCR of 80%. GNPA grew 4.7% QoQ in Q3FY12
while restructured assets remain sequentially flat at | 175.7 crore.
Provisions dipped 10.4% YoY to | 22.4 crore. We have revised our credit
growth (from 30% to 14.7%) and investment growth (from 30.8% to
45.3%) for FY12E as the bank is witnessing higher credit substitute
demand. We estimate PAT CAGR of 32.8% to | 994 crore, over FY11-13E.
ƒ Retail presence strengthens both on liability and asset side…
A savings rate hike has led to an improvement in the CASA ratio by
160 bps QoQ to | 12.6% in Q3FY12. The bank now holds about 31%
of deposits in the form of either CASA or branch banking term
deposit. In line with the version 2.0 strategy, the bank has added 26
branches during Q3FY12 taking the total count to 331.
Retail share in advances has augmented from 4.5% in Q1FY11 to
15.2% in Q3FY12. Retail credit witnessed robust 73.5% YoY growth
to | 5452 crore compared to total credit growth of 15.3% YoY.
ƒ Credit growth subdued at 15.3%, customer assets grow 28.1% YoY
Credit growth remained muted with 15.3% YoY growth to | 35868
crore while total customer assets (advances + credit substitutes via
investments) grew 28.1% YoY to | 43750 crore. The bank has
witnessed higher demand for credit via CP and bond as they provide
liquidity and are simpler to get into fixed rate contracts. We expect
this trend to continue till Q4FY12E. Hence, we have revised credit
growth from 30% to 14.7% and investment growth from 30.8% to
45.3% for FY12E.
V a l u a t i o n
The bank has been consistently delivering RoA of 1.5%+ & RoE of 20%+
for 13 consecutive quarters. We maintain our BUY recommendation with
a target price of | 369, valuing the bank at 2x FY13E ABV.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S t r e n g t h e n i n g r e t a i l p r e s e n c e …
Yes Bank registered healthy PAT growth of 32.9% YoY to | 254.1 crore (I
direct estimate: | 237.6 crore) on the back of a strong all-round
performance. NII surged 32.3% YoY to | 427.6 crore as it maintained NIM
YoY at 2.8% (10 bps QoQ dip). Non-interest income grew a healthy 30.8%
YoY to | 211.4 crore. C/I ratio was stable at 37.6%. The bank continues to
have best in class asset quality as it reported GNPA ratio at 0.2% and
NNPA ratio at 0.04% with PCR of 80%. GNPA grew 4.7% QoQ in Q3FY12
while restructured assets remain sequentially flat at | 175.7 crore.
Provisions dipped 10.4% YoY to | 22.4 crore. We have revised our credit
growth (from 30% to 14.7%) and investment growth (from 30.8% to
45.3%) for FY12E as the bank is witnessing higher credit substitute
demand. We estimate PAT CAGR of 32.8% to | 994 crore, over FY11-13E.
ƒ Retail presence strengthens both on liability and asset side…
A savings rate hike has led to an improvement in the CASA ratio by
160 bps QoQ to | 12.6% in Q3FY12. The bank now holds about 31%
of deposits in the form of either CASA or branch banking term
deposit. In line with the version 2.0 strategy, the bank has added 26
branches during Q3FY12 taking the total count to 331.
Retail share in advances has augmented from 4.5% in Q1FY11 to
15.2% in Q3FY12. Retail credit witnessed robust 73.5% YoY growth
to | 5452 crore compared to total credit growth of 15.3% YoY.
ƒ Credit growth subdued at 15.3%, customer assets grow 28.1% YoY
Credit growth remained muted with 15.3% YoY growth to | 35868
crore while total customer assets (advances + credit substitutes via
investments) grew 28.1% YoY to | 43750 crore. The bank has
witnessed higher demand for credit via CP and bond as they provide
liquidity and are simpler to get into fixed rate contracts. We expect
this trend to continue till Q4FY12E. Hence, we have revised credit
growth from 30% to 14.7% and investment growth from 30.8% to
45.3% for FY12E.
V a l u a t i o n
The bank has been consistently delivering RoA of 1.5%+ & RoE of 20%+
for 13 consecutive quarters. We maintain our BUY recommendation with
a target price of | 369, valuing the bank at 2x FY13E ABV.
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