Bank Results season (India Earnings) : Yes Bank starts back from 390 levels despite overnight straits

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

 

Banks look for Fee Income push (India Earnings Season)

An HDFC Bank Branch in Hyderabad
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Despite paltry box office pickings of just Rs 1300 Crores for the Corporate Finance teams, private sector banks are set to make a profitable killing for the quarter’s results led by Investment based products, bancassurance and commercial banking charges on Trade and retail customers. The kicker is almost 40-50% for Private Banks like Kotak and HDFC Bank while even PNB and UBI will bolster their effective interest income growth with 20% growth in fee income.

Banks have recently been allowed multiple ( up to 4) insurance partners for their cross-sell desks in wealth management and even longstanding wannabes like Indian Bank will pursue the course to bolster their banking incomes. Axis and HDFC Bank expect almost a fifth of their income from fee based lines

Also deals may be looking up in the latter half of the year if retail regains color and FD”i approvals come through

Bank Results Season (India Earnings Season) ICICI BANK RESULTS UPDATE

The Israeli branch of the "State Bank of ...
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ICICI BANK RESULTS UPDATE: ICICI Bank followed results from HDFC and YES at the top of the heap with growth in advances at 19% to Rs 2.24 lakh crores or or $50 billion, implying a balance sheet size of between $75 bln and $100 bln getting into place behind State Bank of India’s $350 bln balance sheet . The net Interest Margin is also healthy at 2.7% and a continued quarterly Fee based Income of $375 mln, making a  neat $1.5 bln for the full year in investment banking fees.

ICICI Bank’s Profits have come higher by 45% for the quarter year on year at $360 mln odd ( at our own flat rate of Rs 40 for the Dollar)

Q4 NII is Rs 25.2 bln and full year profits have gone up to Rs 51.5 bln and Rs 61 bln on a consolidated basis incl the impact of a lost car loan pool sold off on RBI directions Domestic credit grew by a large 35% for the year. PCR has stayed above even 75% to 76% and non perfroming loans are down to 0.94% releasing Rs 32.8 bln in profits

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