India’s crème de la crème again got a pleasant surprise per their expectations as YES Bank continued increasing its presence in retail with bigger and better CASA scores now comparable with Indusind (27% CASA) and ING Vysya Bank(with ultra retail focused franchises purchased from Vysya)
The bank scored $84 million in Net interest income, 40% higher than last Q4’s $62 million and profits have cruised to $50 million after an equally resounding growth to $35 million last year. The numbers ( NII 349 Crs and NPAT 200 Crs ) are well ahead of expectations and the bank will be key to corporates harnessing the global emerging markets and more important the big Super India – super growth storyline, still intact after recessions and slow growth demons
We’ll keep adding as details come out
It also seems ET is finally responding to competition and results from YES got a much erudite response after things have been sharply upped by us and mint (Tamal Bandhopadhya) in Banking: Here’s the ET insider
With deposit growth coming in higher as against loan growth, the credit-to-deposit ratio declined 400 bps sequentially to 75%.
However, owing to repricing of loans and hike in lending, the bank’s net interest margin ( NIM) — a measure of the difference between the costs of funds and the rate at which loans are priced — remained flat at 2.8%. Going ahead, with a low CASA ratio and the spectre of rising interest rates, there could be pressure on the bank to maintain its margins.
Currently, CASA (which is a low-cost deposit route) constitutes only 10.3% of total deposits. That may be boosted with the bank adding 65 new branches during the year.
Also as a later post suggests YES Bank detractors might like to get its borrowing rates in focus after Rabobank leaves town