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Updated: 22/10/2009 | 12:00 AM IST
Yes Bank banks on strong Q2 show
Capital Market
Thursday, October 22, 2009 (New Delhi)
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Yes Bank rose 1.52% to Rs 247.90 at 15:20 IST after net profit jumped 75.6% to Rs 111.71 crore on a 19% increase in operating income to Rs 678.49 crore in Q2 September 2009 over Q2 September 2008.

The company announced the results during trading hours on Wednesday, 21 October 2009, when the stock had lost 3.82% to Rs 244.20.

Meanwhile, the BSE Sensex was down 174.65 points, or 1.03%, to 16,834.52.

On BSE, 17.41 lakh shares were traded in the counter as against an average daily volume of 6.10 lakh shares in the past one quarter.

The stock hit a high of Rs 254.70 and a low of Rs 242.05 so far during the day. The stock had hit a 52-week high of Rs 261.70 on 20 October 2009 and a 52-week low of Rs 40.80 on 9 March 2009.

The stock had outperformed the market over the past one month till 21 October 2009, rising 24.66% as compared to the Sensex 1.60% rise. It outperformed the market in past one quarter, soaring 59.14% as against 12.92% rise in the Sensex.

The mid-cap private sector lender has an equity capital of Rs 299.36 crore. Face value per share is Rs 10.

The current price of Rs 247.90 discounts the company's Q2 September 2009 annualised EPS of Rs 14.99, by a PE multiple of 16.53.

Other income, which includes items such as commissions from guarantees and financial advisory fees, jumped 88% to Rs 151.15 crore.

Yes Bank's net interest income, a key measure of performance for a lender, grew 30.5% to Rs 159.9 crore in the quarter on strong growth in advances and investments, but fell short of market estimates.

Yes Bank's chief financial officer Rajat Monga was quoted by the media as saying that the rise in net interest income fell short of estimates on account of a Rs 16 crore charge borne by the bank for settlement arising from interest swap business.

Yes Bank is well capitalized to support growth, he said. The bank has shareholders' approval to raise funds up to $250 million (Rs 1,160 crore) though qualified institutional placement.

Yes Bank's net non-performing loans declined to 0.08% in the second quarter from 0.15% a year earlier. The bank's asset quality improved with gross non-performing assets falling from Rs 61.42 crore in Q1 June 2009 to Rs 50.02 crore in Q2 September 2009.

As a consequence, provisions fell from Rs 45.53 in Q1 June 2009 to Rs 23.37 crore in Q2 September 2009.

The bank restructured Rs 45 crore of advances during the quarter, which constituted 0.28% of the gross advances as on 30 September 2009. The lender's total restructured advances now stand at Rs 156 crore, which is 0.96% of total advances.

Yes Bank provides banking services to large corporate and institutional clients, small and medium sized businesses and retails customers.

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