This private sector bank has posted extremely robust results for the year ended 31st March 2008 and this has led to expectations now build up around the other private sector banks. And the best part about the results is that it helped pull up the bank stocks on the BSE. Banking stocks which had been mercilessly hammered down over the past few days, were suddenly on every investors buying list and yesterday, almost all the frontline private sector bank stocks figured out in the top gainers of the day. The entire banking index was up by over 3%. If nothing else, we owe it to Yes Bank in helping push away the pall of gloom which was cast all over the bank stocks, in the wake of the “exotic” forex derivative investments!
YoY, for the year ended 31/03/08, the total income earned rose by a whopping 2.13 times to Rs 1665.35 crore. Interest income surged 2.23 times to Rs.1,310.82 crore. And despite the interest expended going up by 2.34 times to Rs.974.11 crore and total expenditure increasing 2.16 times to Rs.1315.27 crore, on the back of the huge revenues earned, the bank managed to more than double its PBT at Rs.350.08 crore. The Bank had a huge tax outgo, it was up 3.7 times at Rs.106.46 crore and yet, its PAT rose by a stunning 2.12 times at Rs.200.02 crore. Its capital adequacy ratio stands at 13.64%.
Regarding its exposure to the forex derivatives market, the bank has clarified that it has no uncovered exposure and has a highly valuable treasury customer base which is consistently meeting all its maturing financial obligations. Of the total derivatives exposure of the bank, 70% exposure is to large clients, 30% to medium sized corporates , spread over 53 clients. The management has also clarified that based on the internal scoring method of the bank, all the clients in the derivatives segment are either A rated or above.
It is also pertinent to note that FIIs have a 46.92% stake in the bank in which Rabobank International BV. Given the fast approaching deadline of 1st April 2009, Yes Bank is clearly one of the hot favourites of the foreign banks.
At the current rate of Rs.167, it surely makes a very good buy for some good long term gains.
YoY, for the year ended 31/03/08, the total income earned rose by a whopping 2.13 times to Rs 1665.35 crore. Interest income surged 2.23 times to Rs.1,310.82 crore. And despite the interest expended going up by 2.34 times to Rs.974.11 crore and total expenditure increasing 2.16 times to Rs.1315.27 crore, on the back of the huge revenues earned, the bank managed to more than double its PBT at Rs.350.08 crore. The Bank had a huge tax outgo, it was up 3.7 times at Rs.106.46 crore and yet, its PAT rose by a stunning 2.12 times at Rs.200.02 crore. Its capital adequacy ratio stands at 13.64%.
Regarding its exposure to the forex derivatives market, the bank has clarified that it has no uncovered exposure and has a highly valuable treasury customer base which is consistently meeting all its maturing financial obligations. Of the total derivatives exposure of the bank, 70% exposure is to large clients, 30% to medium sized corporates , spread over 53 clients. The management has also clarified that based on the internal scoring method of the bank, all the clients in the derivatives segment are either A rated or above.
It is also pertinent to note that FIIs have a 46.92% stake in the bank in which Rabobank International BV. Given the fast approaching deadline of 1st April 2009, Yes Bank is clearly one of the hot favourites of the foreign banks.
At the current rate of Rs.167, it surely makes a very good buy for some good long term gains.
Source: sptulsian.com
