Bank Results season: Here’s the new pedigree of bankers (Yes Bank Q3 2012)

Yes Bank was one of the few to outpace the Rupee without export earnings this quarter, with Banks generally choosing a 20% mark as high growth in the quarter. Yes Bank grew NII to an even $75 mln or INR 42.72 bln, a small request for favors to analysst believing inthe Indiabull story and even the midcap story some might say in this run. Though the growth was inked decades ago by the DNA the bank chose when it was founded out of Rabo Finance, its profitability is no flash in the pan as it has chosen at times in its clients, and at a few times in its expansion like the KPO plans it had to scale back. Non Interest Income is almost one third of the bank’s total income at INR 21 bln

The Total Income grew to INR 64 bln even as the low CASA base grew witht he aid of unregulated interest rates at 100% growth in Savings (99.2%) Nine month profit is a consolidated INR 7.05 bln and the profit INR 2.55 bln for the quarter. CASA added 1.6% to the last quarter’s ratio

Gross and Net NPAs remain negligible at 0.2% and 0.04% HDFC BAnk is also outside the NPA storm keeping Axis Bank and ICICI Bank hostage to the PSE banks systemidsation driven spike in visible and systemic NPA books

Yes Bank Tier I common is however barely adequate at 9.2% showing management expectations are not too rosy on the increase in credit despite the increase in Advances to INR 359 bln ahead of ING and Indusind with high CASA ratios. YES CASA stands at12.6% The CASA block is $1.2 bln now from $1 bln on last years dolla r fX benchmark (INR 40 at this blog)

Thus ROE is a high 23%. Yes chooses the QIP route to grow Tier I & II Capital which is together 16%+. EPS remains above 7 Loan loss cover 375% and Prov cover of 80% (PCR is now back to 56% reqt at RBI)