YES Bank Q2FY11 Result Update
Ø YES Bank net profits increasing by 58% to INR 1763 Mn YoY. This was supported by strong loan growth of 86% YoY to INR 303.5 Bn. The deposits grew by 107% YoY to INR 400 Bn.
Ø The net interest income grew by 78% YoY to INR 3132 Mn. Bank’s net interest margins (NIMs) remained stable at 3% and CASA ratio to 10.1%.
Ø Along with expansion of loan book the bank maintained a stable asset quality, with gross & net NPAs declining to 0.22% & 0.06% from 0.31% & 0.0.8% YoY respectively.
Outlook and Valuation
At the CMP INR 353 the stock trades at 2.6x of its FY12E Book Value., we have a BUY rating on the stock for target price of INR 461 for 12-18 months.
Thanks & Regards,
Unicon Wealth Research