vishnuvega
20-12-2007, 07:15 AM
-Yes Bank has registered impressive growth in the second quarter of FY08, surpassing all expectations. Earnings are expected to remain strong on account of robust growth in business owing to its aggressive expansion plans. Its retail branches are expected to drive growth in its retail assets, which in turn is expected to generate considerable fee income from third party distribution of financial products.
-In 2QFY08, the bank added six branches to take its total number of branches to 60. The bank has already received additional licenses to open 56 more branches and 125 ATMs. The management has indicated that its total number of branchs will be 100 in FY08 and expects to increase to 175 in FY09.
-As the bank begins to leverage its expanding retail franchise, the share of CASA deposits is expected to control rising cost to funds. It continues to invest in improving the diversity of its fee income by establishing new fee related activities, thereby maintaining high levels of non-interest income, and being ROE accretive.
- The share of low-cost CASA deposits to total deposits improved from 5.2 per cent in 2QFY07 to 7.4 per cent in 2QFY08.Ąz On the operational front, the NIM has declined to 2.3 per cent but with improvement in the CASA deposits it is expected to improve, going forward. Importantly the bank has zero per cent gross NPAs. The scrip is trading at a price to book ratio of 8.27x, which on the higher side. we recommend it to investors with a perspective for 18 months.
-In 2QFY08, the bank added six branches to take its total number of branches to 60. The bank has already received additional licenses to open 56 more branches and 125 ATMs. The management has indicated that its total number of branchs will be 100 in FY08 and expects to increase to 175 in FY09.
-As the bank begins to leverage its expanding retail franchise, the share of CASA deposits is expected to control rising cost to funds. It continues to invest in improving the diversity of its fee income by establishing new fee related activities, thereby maintaining high levels of non-interest income, and being ROE accretive.
- The share of low-cost CASA deposits to total deposits improved from 5.2 per cent in 2QFY07 to 7.4 per cent in 2QFY08.Ąz On the operational front, the NIM has declined to 2.3 per cent but with improvement in the CASA deposits it is expected to improve, going forward. Importantly the bank has zero per cent gross NPAs. The scrip is trading at a price to book ratio of 8.27x, which on the higher side. we recommend it to investors with a perspective for 18 months.