Wednesday, April 17, 2013



& FY 2012-13

YES BANK has announced the Financial Results for the Quarter & Year ended March 31, 2013. The Results have shown significant improvement and growth over the comparable quarter and year.

Ø  Net Profit growth of 33.2% to Rs.362.2crore due to expansion in NIMs, healthy growth in NII & non-interest income along with improved cost – to - income ratio for the quarter
Ø  NII increased by 42.4% with steady growth in assets , and NIM expansion y-o-y; Non-interest grew by 42.4% y-o-y.
Ø  CASA ratio has improved to 18.9%;growing 71.6% y-o-y with SA growth at 140.5%
Ø  Healthy Asset Quality trend continues with Gross NPA at 0.20% and Net NPA at 0.01%
Ø  Tier I Capital steady at 9.5% with strong internal accruals; Total Capital Adequacy at 18.3%
Ø  Dividend of Rs.6per share (60%) - an increase of 50% over FY12. Dividend payout ratio at healthy 16.5%

"General expectation is that interest rates will soften, which will reduce the cost of funds for the bank. So, we should see further improvement in NIM by around 15-20 basis points in the current fiscal," the MD &CEO Mr. Rana Kapoor said. 

 "CASA has shown sound improvement in the last fiscal growing over 71.6 per cent over previous fiscal," Kapoor said. 

"Asset quality has been preserved...we will be able to maintain the asset quality at the current level," Kapoor said, adding that the total provisioning cover of the bank stood at 92.6 per cent by the end of the March quarter in order to meet any adverse movement in this front. The bank, which witnessed a slippage of Rs 18-20 crore in the fourth quarter, had a total restructuring of Rs 144.2 crore by the end of last fiscal. 

"We hope to grow our loan book by 24-25 per cent in this fiscal and it can go upto 30 per cent with credit substitutes," Mr. Kapoor said, adding that the bank plans to derisk its business in some segments like power and select infrastructure sectors. In terms of capital adequacy ratio, the bank has a CAR of 18.3 per cent by the end of this fiscal with a tier-I capital of 9.5 per cent. 

"We have got the board approval to raise upto USD 500 million. We may take GDR or QIP route to raise this money," Kapoor said.

Some High Lights :

Healthy growth in Advances and Deposits : Total Advances grew by 23.7% to Rs.46,999.6 crore as at March 31, 2013 from Rs.37,988.6 crore as at  March 31, 2012.

Total  Customer Assets (Loans + Credit Substitutes)  grew by 30.9%  to  Rs.60,356.3 crore as at March 31, 2013 from  Rs. 46,119.9 crore as at March 31, 2012.

Current and Savings Account (CASA) deposits grew by 71.6% y-o-y to Rs.12,687.5 crore taking the CASA ratio to  18.9% as at March 31, 2013 up from 15.0 % as of March 31, 2012.

Savings Account deposits grew by 140.5% y-o-y to Rs.6,022.7crore as of March 31, 2013 and the Current Account deposits grew by 36.3% to Rs.6,664.9crore as of March 31, 2013.

Retail Banking Liabilities (CASA + Retail Banking term deposits) improved from 32.7% of Total deposits as of March 31, 2012 to 35.5 % as of March 31, 2013.

Total Deposits grew by 36.2% to Rs.66,955.6 crore as at March 31, 2013 from Rs.49,151.7 crore  as at March 31, 2012.
Total Assets grew by 34.6% to Rs.99,104.1crore as at March 31, 2013 from Rs.73,625.7crore as at  March 31, 2012.

Corporate & Institutional Banking (Large Corporates) accounted for 64.7% of the Customer Assets  portfolio, Commercial Banking (Mid-sized Corporates) accounted for 17.1% and Retail Banking (including MSME) –18.2%

Robust Net Interest Income (NII) Growth : NII for Q4FY13 increased by 42.4% y-o-y to Rs.638.1crore from Rs.448.2 crore in Q4FY12. This was on account of healthy growth in Customer Assets and expansion in NIM to 3.0% in 4FY13 from 2.8% in Q4FY12.

NII for FY13 was up 37.3% to Rs.2,218.8 crore as compared to Rs.1,615.6crore for FY12.

NIM for the Bank was 2.9% in FY13 compared to 2.8% in FY12.

Non Interest Income grew by 42.4% y-o-y to Rs.379.4 crore for Q4FY13 from  Rs.266.4crore in Q4FY12. 

Non Interest Income demonstrated robust growth of 46.7% to Rs.1,257.4crore in FY13 as compared to Rs.857.1crore in FY12. 

Steady growth in Operating & Net profit: Operating profit for Q4FY13 was up 47.3% to Rs.633.9 crore as compared to Rs.430.4 crore for Q4FY12.

The Cost to Income ratio was 37.7% in Q4FY13.

Net Profit in Q4FY13 was up 33.2% at Rs.362.2 crore from Rs.271.8 crore for Q4FY12.

Operating profit for FY13 was up 39.1% to Rs.2,141.7 crore as compared to Rs.1,540.2 crore for FY12.

The Cost to income ratio was 38.4% in FY13.

Net Profit for FY13 was up 33.1% to Rs.1,300.7crore from Rs.977.0 crore in FY12.

Consistently healthy Asset Quality :Gross Non Performing Advances as a proportion of Gross Advances was at 0.20% while Net Non Performing Advances as a proportion of Net Advances was at 0.01% as at March 31, 2013 as compared to 0.22% and 0.05% respectively as at March 31, 2012.

The Bank has increased its specific provisioning cover to 92.6% as at March 31, 2013.

Total Restructured Advances (excluding NPA) stand at Rs.144.2 crore as at March 31, 2013. This represents 0.31% of Gross Advances down from 0.53% as of March 31, 2012.

Strong Shareholders’ returns : The Bank delivered RoE of 25.2% and RoA of 1.6% for Q4FY13. RoE was 24.8% and RoA was 1.5% for FY13.

Return on Assets has been at or above 1.5% for the past 5 years , and Return on Equity has been 20% or above over the same period.

Capital Funds : Tier I Capital stood at 9.5% and total CRAR stood at 18.3% as at March 31,2013 .

Total Capital funds grew by 31.8% to Rs.12,295.2 crore as at March 31, 2013 compared to Rs.9,326.1 crore as at March 31, 2012

YES BANK added 18 branches during the quarter, taking the total branch count to 430 as on  March 31, 2013.

Basic EPS for the Quarter was Rs.10.1 (Rs.9.7 in Q4 FY 12) and Rs. 36.5 for FY 13 ( Rs.27.9 for FY 12).

At current price of Rs.479, the PE Ratio works out to 13.12 on FY 13 EPS.If Q4 EPS is annualized, then PE Ratio further falls to 11.86. Considering the Growth curve of the bank, it seems a Safe bet for good returns in the medium to long term.

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