Strong Q3 numbers generate interest in Yes Bank

Yes Bank rose 1.36% to Rs 351 at 13:42 IST on BSE after net profit rose 21.4% to Rs 415.60 crore on 17.4% growth in total net income to Rs 1053.30 crore in Q3 December 2013 over Q3 December 2012.

Meanwhile, the S&P BSE Sensex was up 175.01 points or 0.83% at 21,207.89.

On BSE, so far 12.13 lakh shares were traded in the counter as against average daily volume of 7.19 lakh shares in the past two weeks.

The stock was volatile. The stock rose as much 2.8% at the day's high of Rs 356 so far during the day. The stock lost as much as 1.24% at the day's low of Rs 342 so far during the day.

Yes Bank's net-interest income (NII) rose 13.9% to Rs 665.40 crore in Q3 December 2013 over Q3 December 2012, on account of a cautious and steady growth in advances. Non-interest income rose 23.9% to Rs 387.90 crore in Q3 December 2013 over Q3 December 2012, on the back of continued growth across all fee income streams, Yes Bank said. The bank's net interest margin (NIM) declined to 2.9% from 3% in Q3 December 2012.

Yes Bank's operating profit rose 9.1% to Rs 614.70 crore in Q3 December 2013 over Q3 December 2012, driven by stable growth in NII and non-interest income

Yes Bank's current and savings account (CASA) surged 37.8% YoY to Rs 14246.10 crore taking the CASA ratio to 20.9% as on 31 December 2013, up from 18.3% as on 31 December 2012. Yes Bank said it continues to demonstrate strong traction in CASA on the back of an increase in branch network, enhanced savings rate offering and improvements in productivity.

The bank's gross non-performing advances as a proportion of gross advances was at 0.39% as on 31 December 2013 while net non-performing advances as a proportion of net advances was at 0.08% as at 31 December 2013. Bank's specific loan provision coverage ratio was at 78.4% as on 31 December 2013 (excluding counter cyclical provision). Total counter cyclical provision stood at 0.4% of advances, Yes Bank said.

As per Basel III, Tier I capital stood at 9.9% and total CRAR stood at 16.1% (including nine-months FY 2014 profits, adjusted for prorated dividend) with CET I ratio at 9.3% as at 31 December 2013, Yes Bank said.

Commenting on the results, Mr. Rana Kapoor, MD, Yes Bank said, "Yes Bank has delivered a satisfactory quarter of financial performance despite a challenging economic environment. During this year, Yes Bank has further invested in its branch network, which is generating increasing granular and CASA deposits. The bank has maintained NIMs and delivered consistent RoA and RoEs despite the tightening interest rate environment. The bank continues to generate satisfactory returns resulting in improving core Tier I as per Basel III norms. Yes Bank has recently received approval from the UAE Central Bank (previously from RBI) to set up a representative office in Abu Dhabi, UAE which will be the bank's maiden international beginning".

Yes Bank is one of the leading private sector banks in India.

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