The Hindu Business Line : YES Bank Q2 net doubles

Mumbai, Oct 17 YES Bank plans to raise Rs 500 crore of Tier I capital and Rs 100 crore Tier II capital by February / March 2008 in order to meet its business needs. The bank had earlier infused Rs 182 crore as a part of Tier II capital. “With the additional capital infusion, we expect our capital adequacy to grow to 17.5-18 per cent,” said Mr Rana Kapoor, Managing Director and Chief Executive Officer, YES Bank.

The capital adequacy ratio of the bank for the quarter ended September 30 stands at 13.02 per cent (11.98 per cent).

Backed by an increase in Net-Interest Income (NII) and non-interest income, YES Bank has reported 110.7 per cent rise in its net profit at Rs 45.28 crore for the quarter against Rs 21.49 crore for the corresponding quarter of last fiscal.

The NII increased by 94.89 per cent at Rs 82.77 crore (Rs 42.47 crore). “The NII went up as a result of the upper repricing of our loan book. We have acquired some new loans at higher levels,” said Mr Rana Kapoor, Managing Director and Chief Executive Officer, YES Bank.

The non-interest income rose by 107.1 per cent to Rs 75.93 crore (Rs 36.66 crore). The net interest margin was maintained at 2.9 per cent.

Advances grew by 101.47 per cent at Rs 7,515.90 crore (Rs 3,730.50 crore) with corporate loan portfolio comprising 65 per cent, small and medium enterprises 32 per cent and retail 1.5-2 per cent.

“Our retail segment has not grown that well as we have been very cautious about the pricing till now, but now with the price correction we hope to grow more,” said Mr Kapoor.

Talking about the cost of funds, Mr Kapoor said that the cost of funds have come down by about 90 basis points to 8.4 per cent this quarter (9.3 per cent).

The syndication business of the bank has shown a good growth. “Our syndication business is growing well and this is reflected in the strong growth of our fee-based income,” said Mr Kapoor.

The bank has got licences to open 56 new branches and 125 offsite ATMs. “We plan to add 56 branches by July next year in order to build up a robust retail network,” said Mr Kapoor.

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