Despite reporting 38% higher net profit in first quarter on robust revenues as well as lower bad debts; Yes Bank failed to cheer market as its share fell by over 12% to Rs383.3

Yes Bank saw its first quarter net profit grew 38% to Rs400.84 crore as against the Rs290.14 crore, same period last year. However, this failed to boost the market sentiments and Yes Bank shares fell 12.6% to Rs383.3.
 

For the first quarter to end-June, Yes Bank’s net revenues increase 31% to Rs2,839.97 crore as against  Rs2174.44 crore in the corresponding period last year. Meanwhile its operating profit grew 48% y-o-y to Rs679.96 crore for the quarter ended 30 June 2013. 
 

According to Moneylife analysis, the bank’s three-quarter average revenue growth rate stood at 30% while its revenues for the June 2013 quarter grew at 31%. The average operating profit growth rate for the last three quarters stood at 46% while the lender posted a 48% increase during the June quarter. The Bank despite the good showing, is quoting at a discount of sorts. Its market capitalisation is just 5.62 times its operating profit while the return on net worth stood at 24%.
 

The bank’s total advances grew 24.3% to Rs47,897 crore as at June 2013 when compared to the Rs38,533 crore recorded in the same period last year. Current and savings account (CASA) deposits grew 61.1% to Rs13,163.2 crore taking CASA ratio to 20.2%, up from 16.3% for the same period last year.
 

Total deposits of Yes Bank grew 29.9% to Rs65,244.8 crore for the quarter ended 30 June 2013 as against Rs50,208 crore recorded for the same period last year. The bank’s balance sheet stood at Rs100,802 crore, up 29.9% y-o-y.
 

The Bank’s tier-1 capital stood at 9.5%while total capital adequacy ratio 15.4%.
 

The bank’s gross non-performing advances ratio, for the June 2013 quarter, stood at 0.22% when compared to then 0.28% for the June quarter last year. Similarly, net non-performing advances ratio stood at 0.03%, or Rs12.1 crore, for the current quarter when compared to 0.06% for the same period last year.
 

Corporate and institutional banking accounted for 64.3% of the customer assets portfolio while commercial banking (mid-size) accounted for 18.6% of the portfolio. Retail banking constituted to 17.1% of the customers’ assets.
 

Commenting on the results and financial performance, Rana Kapoor, managing director and chief executive officer said, “Yes Bank has witnessed steady growth on back of strong net interest income, and continued to focus on revenue diversity leading to a healthy increase in non-interest income. The bank has continued the strong traction on CASA and retail deposits, with its CASA ratio crossing 20% for the first time since inception.”
 

During the quarter, Yes Bank added 45 branches (total 475 branches), 100 ATMs (total 1051 ATMs).
 

On Wednesday, Yes Bank closed 12.56% down to Rs383.3 on the BSE, while the benchmark Sensex ended the day 1% down at 20,090.