Mumbai: Private sector lender Yes Bank is looking at raising $1 billion by selling Shares in local and overseas markets to shore up its capital base. It had raised $500 million from a stock sale last May. In a stock exchange filing on Wednesday, Yes Bank said its board of directors in a meeting “empowered the capital raising committee, a sub-committee of the board, to raise funds by way of issuance of equity capital up to $ one billion in one or more tranches on such terms and conditions as it may deem fit.” The share issue may be by way of qualified institutions placement (QIP) or any other international offering like global depository receipts (GDRs)/American depository receipts (ADRs), it added.
Yes Bank founded in 2004 is the country’s fifth-biggest private sector lender by assets. During the fourth quarter ended March 31, 2015 Yes Bank reported a healthy operating performance with a 28.1 per cent rise in its standalone net profit at Rs 551 crore on higher interest income and healthy growth in advances and deposits. Net interest income for the bank grew at healthy pace of 35.8 percent year on year to Rs 977.1 crore for Q4 FY15 while for 2014-15 it grew by 28.4 per cent to Rs 3,487.8 crore. NIM was 3.2 per cent for January to March quarter. Non interest income stood at Rs 590.4 crore for Q4FY15; y-o-y growth of 32.5 per cent while for FY 15 it grew by 18.9 per cent to Rs 2,046.5 crore.
Total advances grew by 35.8 per cent to Rs 75,549.8 crore as at March 31, 2015. Total deposits grew by 22.9 per cent to Rs 91,175.8 crore as at March 31, 2015. Current and savings account (CASA) deposits grew by 29 per cent to Rs 21,079 crore taking the CASA ratio to 23.1 per cent as on March 31, 2015, up from 22 per cent as at March 31, 2014. On the asset quality front, stressed assets increased on a quarter on quarter with gross non-performing loans and net non-performing loans in absolute terms up 12 per cent quarter on quarter and 36 per cent quarter on quarter.
Gross NPA and net NPA came in at 0.41 per cent and 0.12 per cent respectively in Q4 FY2015 as compared to 0.42 per cent and 0.1 per cent in Q3 FY2015. Restructured asset came in higher at Rs 381.9 crore in Q4 FY2015; this represents 0.5 per cent of loans as compared to 0.26 per cent in Q3 FY2015. Vaibhav Agrawal vice president research – banking at Angel Broking said, “At the current market price the stock is trading at two times the FY2017E ABV. We maintain BUY rating on the stock.
