Yes Bank

On a day when bank shares tanked the most on the back of RBI’s new directives to curb liquidity and stem rupee fall, Yes Bank posted a good set of numbers for Q1FY14. The numbers were largely ignored by the market though once the dust settles, maybe marketmen will look at these numbers anew. The bank ended the quarter with a 38% (YoY) and 11% (QoQ)rise in net profit at Rs.401 crore, much better than expectations of around 370-380 crore. The bottomline was buoyed by the 40% rise in NII at Rs.659 crore. The fact that its other income also rose by 53% at Rs.442 crore helped. NIM rose from 2.8% to 3% (YoY) and unchanged sequentially.

Advances, YoY grew 24% while deposits were up 30% though QoQ, loans grew just 2% but deposits fell 2.6%. CASA for the first tine went up over 20% at 20.2% v/s 16.3% (YoY). Large corporate accounted for the major chunk of its customer asset portfolio at 64.3%, mid-sized was 19% but retail banking actually slumped 17%.

In terms of asset quality, Bank’s Gross NPA ratio stands at 0.22% v/s 0.28% and Net NPA ratio was at 0.03% v/s 0.06% (YoY). Though NPAs came down, it was strange to see the provisions and contingencies go up  more than 3 times (YoY) at Rs.97 crore. Total Restructured Advances (excluding NPA) stood at Rs.139.5 crore as at June 30, 2013 v/s Rs.196 crore in Q1Fy13. This represents 0.29% of Gross Advances down from 0.51% as of June 30, 2012. Its specific provisioning cover was at 88.5%. It  added 45 branches during the quarter, taking the total branch count to 475 as on June 30, 2013.