MUMBAI, April 27, 2018 /PRNewswire/ --
India's leading private sector bank, YES BANK, announced its quarterly results today, blowing past expectations of the street. On the back of strong earnings, robust asset quality and Board approval of Mr. Rana Kapoor's (MD & CEO, YES BANK) reappointment for three years, the share soared past a whopping 10 percent.
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Amidst myriad issues plaguing the banking industry, YES BANK's healthy asset quality delivery and strong earnings growth beating market expectations is much needed welcome news and has set the bar high for the entire industry. The Bank has recorded strong earnings delivery with a healthy growth in NII leading to PAT growth of 29.0% (INR 1,179.4 Crores) in Q4FY18 and 26.9% (INR 4,224.6 Crores) in FY18.
"This year has been a year of milestones," said Mr. Rana Kapoor while addressing the Press. The Bank has crossed significant milestones this financial year by clocking INR 3 lakh crores in Total Assets, and US$ 2.5 Bn in IBU Total Assets while recording Advances and Deposits in excess of INR 2 lakh crores each. The bank has also ensured that the strong growth in books is despite reducing the burden of non-performing assets with improvement in GNPA (1.28% from 1.72% sequentially) and NNPA (0.64% from 0.93% sequentially). Consequently, the bank has been successful in containing the credit costs at 76 bps for the financial year.
The growth achieved by the bank is also well segmented and granular with 53.9% y-o-y growth in Advances, spread across corporate, MSME and retail businesses. Core Retail Banking advances doubled in last one year, now at 12.2% of Total Advances, coupled with healthy growth of 34.4% in MSME.
YES BANK has demonstrated consistent return ratios with RoA at 1.6% and RoE at 18.8% for Q4FY18 and the entire FY18 RoA stood at 1.6% and RoE at 17.7% with a book value of each share at INR 111.8.
YES BANK has delivered robust growth across relationship and business segments and increasing granularity:
Advances grew by 53.9% y-o-y to INR 2,035.4 Bn on the back of robust growth across Corporate, MSME and Retail businesses. Retail Banking Advances grew by 99.1% y-o-y to 12.2% of Advances (up from 9.4% as on March 31, 2017). Segmental mix below:
As on Mar As on Mar Growth As on Dec Growth
Business Segment 31, 2018 31, 2017 (y-o-y) 31, 2017 (q-o-q)
A) Corporate Banking 67.9% 67.7% 54.1% 67.7% 19.0%
of which IBU Advances 7.1% 4.6% 138.8% 6.1% 37.6%
B) Retail & Business Banking 32.1% 32.3% 53.3% 32.3% 18.1%
of which:
i) Medium Enterprises 9.7% 10.5% 41.6% 9.9% 16.7%
ii) Small and Micro Enterprises 10.3% 12.3% 28.3% 10.6% 14.5%
iii) Retail Banking 12.2% 9.4% 99.1% 11.8% 22.4%
Total 100.0% 100.0% 53.9% 100.0% 18.7%
In FY18, the bank raised INR 5,415 crores of Basel III AT I, and INR 7,000 crores of Basel III Tier II Capital Funds aggregating to INR 12,415 Crores of Total Capital Funds. This is the highest hybrid capital raise in any FY since the inception of the bank, reflecting on excellent domestic market appetite for YES BANK capital qualifying Bonds. Total Capital Adequacy of the bank stood at 18.4% with Total Capital Funds at INR 46,975.7 crore. Tier I Ratio and CET I ratio is also healthy at 13.2% and 9.7% respectively.
The bank also announced that a dividend of INR 2.7 per share (135%) has been recommended by Management & Board (subject to shareholders' approval). Continuing its emphasis on building a diverse leadership to guide the bank, YES BANK has announced appointment of Board members - Mr. Rentala Chandrashekhar as an Additional (Non-Executive) Independent Director and Dr. Pratima Shorey as an Additional (Non-Executive) Independent Director.
Also, continuing in its foray towards building its strength in digital banking, the bank established its leadership position yet again in the digital space. YES BANK was ranked #2 in performance on digital payments across Public, Private, Foreign & Payment Banks by Ministry of Electronics & Information Technology (MeitY) for FY18.
"Ás we step into the 4th year (FY18-19) of this current 5-year Large Bank Growth Phase (up to March 31, 2020), we remain well positioned to deliver on growth and earnings while preserving asset quality, and continuing to invest in digital and technology initiatives towards making YES BANK a cutting-edge digital home country Indian bank," said Rana Kapoor in the Press Release issued by the company.
About YES BANK
YES BANK, India's fourth largest private sector Bank with a pan India presence of 1,100 branches across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is the outcome of the professional and entrepreneurial commitment of its Founder Rana Kapoor and its Top Management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India.
YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.
YES BANK has a knowledge driven approach to banking, and offers a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals' Bank of India with the long term mission of 'BUILDING INDIA's FINEST QUALITY LARGE BANK'.
Media Contact:
Ananya Chand
[email protected]
+91-8374971018
YES BANK
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