Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Meet(s)30-05-2018
30-05-2018
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Meet(s)29-05-2018
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Meet(s)29-05-2018
Yes Bank Analysis: Delivers on strong quarter growth after a jittery FY17
by Suhani Adilabadkar Yes Bank's name itself signals affirmation, a seeming willingness to take on challenges. The bank however had an eventful FY17 mired in asset quality concerns, RBI divergence issues, successful fund raising and the stock split. In a lifespan of 13.5 years since its inception in 2003, Yes Bank has indicated a hunger for growth, it remains to be seen whether it fulfills this in the long term. In the short term, the bank has seen a good quarter. Quick View Yes Bank delivered a strong quarterly performance, with net profit growth of 29%. Loan book growth jumped 54% YoY. Strong recovery from a weak March and September quarter last year. Retail has doubled YoY. GNPA and NPA ratios improved. Yes Bank also outperformed most of its peers in the midcap banking space. RBL Bank also showed strong growth in advances and deposits. Quarterly performance Almost healed and back to a strong momentum on growth, Yes Bank posted strong fourth quarter numbers. Net profit grew 29% YoY at Rs. 11794 mn and its sequential growth of 10% highest in the last 5 quarters. Core profitability, Net Interest Income (NII), and difference between interest earned and spent jumped 31% YoY and 14% on quarterly basis which was also the highest over the past 5 quarters. The net interest margin contracted by 10 basis points at 3.4% QoQ while on a yearly basis expansion was of the same magnitude with margins at 3.5% for the whole of FY18. Loan book growth was strong 54% YoY at Rs. 2035 bn with growth across all segments, Corporate, Retail and MSME. Retail advances almost doubled and constituted around 12% of total advances against 9.4% same period previous year. During FY18, YES Bank raised capital funds via Basel III AT I and Basel III Tier II bonds, amounting to a total of Rs.124 bn. Cost to Income ratio also improved strongly by 130 basis points at 40.3% in the current March quarter FY18. The bank's asset quality looks to be on a strong footing with both GNPA and Net NPA ratios improving by 24 and 17 basis points YoY at 1.28% and 0.64% respectively, in the March quarter of FY18. Though provisions grew 29% YoY, there was a decline of 5% on quarterly basis. The Indian midcap banking space The coveted mid cap private sector banking space is populated by Federal Bank, DCB bank, Karnataka Bank, Lakshmi Vilas Bank (LVB), RBL Bank and Yes Bank. RBL Bank is the closest peer to YES Bank with respect to profitability growth rate at 37% YOY followed by DCB Bank at 21%. Federal Bank & Karnataka Bank shrunk, while Lakshmi Vilas Bank was deeply in the red with a quarterly loss of about Rs. 6,222 mn. The growth engine for banks, Advances & Deposits, is chugging the fastest for YES Bank with 54% & 41% growth YOY respectively. RBL is the nearest competitor with 37% & 27% YOY growth followed Karnataka Bank and DCB Bank. On the Net Interest Income front, Karnataka Bank tops the chart followed by RBL Bank, Yes Bank & DCB growing at 53%, 42%, 31% & 20% respectively with LVB reporting negative and Federal Bank almost stagnant growth on its core profitability. NIMs are the highest for DCB & RBL Bank at 4.16% & 4% respectively followed by Yes Bank, Federal Bank and Lakshmi Vilas Bank. Gaining the edge Yes Bank stands apart from the rest with respect to its stupendous growth in both Advances and Deposits. Yes Bank’s loan book has higher mix of corporate advances constituting 68% whereas most of its peers are dependent on retail to fuel their future growth. The bank has been exhibiting strong growth over the past three quarters with retail slowly increasing its stake in loan book pie by doubling YOY in the current quarter. Thus NIMs have softened to make way for this aggressive push required for growth in Advances. In addition to that, YES Bank gives the highest savings rate of 6% on an average and thus inherent stored value when unleashed by the bank in the coming quarters will improve its margins. The aggressive momentum is also evident in branch expansion as 50 new branches were added in March quarter taking its total to 1100 and ATMS at 1724 on March 31st, 2018. Among the midcap peers, only Federal Bank comes close with 1252 branches as on March 2018. After two major setbacks in the March and October quarter last year, Yes Bank has recovered phenomenally to the extent that it has the lowest NPA ratios among midcap players. Dark horse RBL bank reported higher GNPA & Net NPA at 1.40% & 0.78% against YES Bank’s 1.28% & 0.64% respectively in the current quarter and that to with the balance sheet size of Rs. 3124456 Mn which is 5 times that of RBL Bank. Though some of Yes Bank's peers like RBL and DCB Bank are growing strongly every quarter, Yes Bank's management has been pushing more aggressively on both growth and asset quality. Suhani Adilabadkar is a Research Analyst registered with SEBI ((INH200003240)) She has done PGDBA (Finance), MS (Finance) and a Fellowship from Insurance Institute of India. She maintains a blog at oasisfundamentals.blogspot.in. Disclaimer: Investing in stock markets is subject to market risks. Neither Trendlyne nor the author is liable for losses including consequential losses, claims, or expenses incurred by third parties from following research reports and advisory analysis available on Trendlyne.29-05-2018
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Call(s)28-05-2018
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Meet(s)25-05-2018
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Meet(s)24-05-2018
Announcement under Regulation 30 (LODR)-Press Release / Media Release
YES BANK empanelled as 'Settlement Bank' by National Stock Exchange24-05-2018
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analysts/Institutional Investors Meet(s)23-05-2018
Announcement under Regulation 30 (LODR)-Press Release / Media Release
YES BANK recovers INR 184 Crores pursuant to acquisition of Bhushan Steel Limited by Tata Steel Limited23-05-2018