INDUSIND BANK vs YES BANK
Q1 FY 2011 COMPARISON
UPDATE DATED 04 10 2010
IndusInd Bank and Yes Bank are two new Generation Banks which are growing at a fast pace.
Both are under Good Managements, who have excellent vision of what they want to achieve for their banks. Both Banks have shown good Potential in the past and good growth Rates.
It is therefore interesting to compare their Q1 FY2011 results in order to look into their future Potential.
Their Q1 FY2011 results compared with their immediate preceding quarters (Q/E 31.03.2010) and corresponding quarters (ending 30.06.2009) are tabulated below to enable some comparison.
The red coloured headings relate to IndusInd and Green relates to Yes bank.
As we can see - Interest on Advances for IndusInd is Rs.604.77 Cr. in Q1 FY11, which is higher by 8.43% from Previous Qtr and by 23% from corresponding Qtr. The same for Yes bank is Rs.557.88 cr which is higher by 13.85% from pre. Qtr and by 41.46% from corresponding Qtr.
Total Income for IndusInd is Rs.932.50 Cr, which is higher by 9.38% from pre Qtr and by 16.33% from corresponding Qtr. For Yes Bank, the same is Rs.883.03 Cr which is 7.07% higher from pre.qtr and 28.38% higher from Corresponding Qtr.
Operating Profit for IndusInd is Rs.230.61 Cr, which is higher by 15.03% from Pre.Qtr, and by 32.3% from corresponding Qtr. For Yes Bank, the same is Rs.248.95 Cr, which is lower by 3.35% from previous Qtr, by higher by 25.87% from corresponding Qtr.
While Interest expended is approximately the same, the employee cost, operating expenses and other operating expenses are higher for IndusInd, which has brought down the operating profit. This may be due to the Higher number of Branches that IndusInd had at the end of last year (210 vs 157)and approximately 100 Branches planned by both the Banks in current year. If revenue Per branch and revenue per employee starts increasing, it appears that IndusInd can easily match Yes Bank at operating profit level.
Provisions for IndusInd is Rs.48.74 Cr, while the same is Rs.12.56 Cr for Yes Bank.
Profit before tax for IndusInd is Rs.181.87 Cr – higher by 23.44% from previous Qtr and by 29.93% from corresponding Qtr. For Yes Bank, the same is Rs.236.39 Cr, higher by 9.94% from previous Qtr and by 55.25% from corresponding Qtr.
Net Profit for IndusInd is Rs.118.55 Cr, which is 21.02% higher from previous Qtr and by 37.05% from corresponding Qtr. The same for Yes Bank is Rs.156.37 Cr which is 11.67% higher from pre. Qtr and by 56.26% from corresponding Qtr.
Paid-up Equity is Rs.411.06 Cr for IndusInd and Rs.341.02 Cr fro Yes Bank – each with Face Value of Rs.10.
Capital Adequacy Ratio is 13.71 fro IndusInd and 16.57 for Yes Bank.
Basic EPS is Rs.2.89 for IndusInd and Rs.4.59 for Yes Bank.
% of Gross/Net NPA is 0.38% for IndusInd and 0.04% for Yes Bank.
Return on Assets is 1.33 for IndusInd and 1.62 for Yes Bank.
In last 3 months, IndusInd has entered into MOUs with various Auto Manufacturers like TATAs, Ashok Leyland, Toyota Kirloskar Motor etc for financing vehicle purchases and dealer financing etc. All these Auto manufacturers have performed excellently in respect of Sales in Q2 FY11 and are also expected to continue to perform well in Fy11 totally. Therefore, it can be expected that its Total income in Q2 may be significantly higher than last Qtr and continue to rise higher in Q3 and Q4 as well. Also, it has raised a huge sum through QIP at a Good premium in the last week of September, of about Rs.1173 Cr, which may raise its Equity ( very little of course) immediately and may bring down the Rise in EPS also slightly in Q2. We can however expect it to have huge beneficial effect from now on, on all parameters of the Bank.
Yes Bank has also been raising funds periodically, which is reflecting in its capital adequacy. "Our total fund raising would be over Rs 1,500 Crore this year and we have already raised Rs 865 crore," CEO &MD of Yes Bank told recently. But, it appears, there may not be much equity infusion.
Thus, both banks are trying to grow at a decent pace and enhancing their business and profitability consistently.
The difference in EPS, P/E and Business volumes as of today are slightly different – because of the stage of business at which each bank is. For example, Net Profit for IndusInd is Rs.118.55 Cr, which is 21.02% higher from previous Qtr but the same for Yes Bank is Rs.156.37 Cr which is 11.67% higher from pre. Qtr.
IndusInd has set its Ambition to be among the TOP 3 PVT SECTOR BANKS whereas Yes Bank wants to be recognized as the WORLD’s BEST QUALITY BANK IN INDIA.
Well. Both Banks are aiming for the skies. Both are performing well. Both appear to be destined to climb to the TOP LADDER. Hence, current prices and price earnings may not perhaps be the best parameters for medium to long term Investors, when looking at buying these two Scrips.
RESULTS IN FIGURES :
| INDUSIND | YESBANK | |||||
| Q / E | 2010 JUNE | Dif %1 | Dif %2 | 2010 JUNE | Dif %1 | Dif %2 |
| Interest on Advances | 60477 | 8.43 | 23 | 55788 | 13.85 | 41.46 |
| Income on Investments | 16445 | 4.65 | 25.02 | 17658 | 2.77 | 26.16 |
| Income on Balances With RBI | 105 | -34.78 | -67.29 | 292 | 56.99 | 105.63 |
| Others | 127 | -65.49 | -47.3 | 181 | 103.4 | -73.73 |
| Interest Earned | 77154 | 7.13 | 22.69 | 73919 | 11.22 | 36.22 |
| Other Income | 16096 | 21.61 | -6.82 | 14384 | -10.2 | -0.94 |
| Total Income | 93250 | 9.38 | 16.33 | 88303 | 7.07 | 28.38 |
| Interest Expended | 47586 | 6.36 | 3.12 | 47709 | 13.48 | 25.9 |
| Employees Cost | 8904 | 14.26 | 46.47 | 8123 | 14.67 | 32.82 |
| Other Operating Expenses | 13699 | 8.09 | 30.44 | 7576 | -0.18 | 51.61 |
| Operating Expenses | 22603 | 10.44 | 36.32 | 15699 | 6.99 | 41.27 |
| Operating Profit | 23061 | 15.03 | 32.3 | 24895 | -3.35 | 25.87 |
| Provisions | 4874 | -8.28 | 41.97 | 1256 | -70.5 | -72.41 |
| Profit before tax | 18187 | 23.44 | 29.93 | 23639 | 9.94 | 55.25 |
| Tax Expense | 6332 | 28.23 | 18.4 | 8002 | 6.72 | 53.32 |
| Net Profit After Tax | 11855 | 21.02 | 37.05 | 15637 | 11.67 | 56.26 |
| Net Profit | 11855 | 21.02 | 37.05 | 15637 | 11.67 | 56.26 |
| Face Value in Rs | 10 | 0 | 0 | 10 | 0 | 0 |
| Paid-up Equity | 41106 | 0.1 | 15.73 | 34102 | 0.4 | 14.79 |
| Capital Adequacy Ratio | 13.71 | -10.57 | 12.93 | 16.57 | -19.6 | -6.01 |
| Basic EPS B EI | 2.89 | 20.92 | 12.93 | 4.59 | 8 | 36.2 |
| Diluted EPS B EI | 2.81 | 20.09 | 18.44 | 4.41 | 8.35 | 32.43 |
| Gross/Net NPA | 8249 | -18.99 | 15.16 | 1109 | -14.6 | -63.48 |
| % of Gross/Net NPA | 0.38 | -24 | -50.47 | 0.04 | -33.3 | -83.33 |
| Return on Assets | 1.33 | 14.66 | -62.38 | 1.62 | -4.71 | -10 |
| Public holding (%) | 77.85 | 0.03 | 4.72 | 72.95 | 0.15 | 5.54 |
As always, readers are requested to offer their suggestions, comments, and corrections, if any, so that the views herein will be more effective, and this blog will receive them all with thanks.
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