Yes Bank covered a lot of ground after publishing results yesterday, as the Net Interest Income jumped 2 in 5 on year or net profits increased more than 10% sequentially on INR 0.94 Bln in Investment gains on bonds /debt . The NII of INR 65.9 Bln was sufficiently larger by our benchmarks as the bank remains one of the few posting robust gains in Fee Income and advisory income including retail charges as at bigger brother HDFC Bank, the lines have gone relatively stale on such income in the Indian scenario.
Other Income was INR 44.2 Bln looking to equal contributions from NII going ahead as is the wont of this income stream in robust bank models. While private banks set quite a standard for robust corporate governance without due transparency in such old habits in Indian Banking a s a consolidated other income figure unexplained, the reforms in banking would still have covered more ground than it is internationally. the higher interest savings led CASA increase to 20% at the bank is still miles away from reaching an entrenched player status but that is just a n indicator of this bank’s potential to grow faster and stronger than the ICICI Banks and the HDFC Banks.
Retail assets remain a priority at the bank with total book still ahead of other “midcaps” as Kotak and indusind dependent on corporate treasuries ( variously wholesale deposits/short funding linked to the usurius 10% = call rates pushed by RBI’s interim policy) with assets of INR 612 Bln
The yields, cost of funds a dynamic provision coverage shared by the bank(click here) continue to reflect the continuing profitability of the bank’s model and its relative closeness to NBFC models in vogue, currently trying to reprocess themselves as banks but the existing players will settle up much higher in any status ranking of the candidates yet remaining a respectful outsider in loan syndicates and loan melas
- Bank Results season (India Earnings) : Yes Bank starts back from 390 levels despite overnight straits (awardz.wordpress.com)
- India Earnings Season: Bank Results scared by the Rate/fx tuple (HDFC Bank Q1 FY 2014) (awardz.wordpress.com)
- India banks, finance firms hit by central bank’s rupee defence (xe.com)
- Bank Results season: Its not the asset quality trails but the change in NiMs (awardz.wordpress.com)
- India’s HDFC Bank Q1 net profit up 30 pct, bad loans rise (uk.reuters.com)
- RBI fines 22 banks for violating KYC, anti-money laundering norms (thehindu.com)
- Banks face regulatory music (thehindu.com)