We have delivered another quarter of satisfactory performance:Rana Kapoor



YES Bank is India’s fifth largest private sector Bank. It offers comprehensive banking and financial solutions to all its valued customers.

Yash Ved of NewsBarons provides you the highlights of a media interaction where Rana Kapoor says, “We are on track to achieve our target CASA ratio of 40% by September 2018, well ahead of our earlier target date of March 2020.”

NB:Brief us about your Financials?

Rana Kapoor: YES Bank announces Financial Results for the Quarter and Half Year ended September 30, 2017.

The Net Profit stood at Rs. 1,002.7 Crores in Q2FY18; y-o-y growth of 25.1%.

NIMs expanded to 3.7% for Q2FY18 from 3.4% in Q2FY17.

The Net Interest Income was at Rs. 1,885.1 Crores for Q2FY18; y-o-y growth of 33.5% driven by steady growth in Advances & CASA, and expanding Margins.

NB:Brief us about the business highlights for the quarter?

Rana Kapoor:The Non-Interest Income was Rs.1,248.4 Crores for Q2FY18; y-o-y growth of 35.4%.

Total Assets grew by 26.7% y-o-y to Rs. 2,37,394.1 Crores, while Total Deposits grew by 23.4% y-o-y to Rs. 1,57,989.8 Crores.

CASA ratio was at 37.2%, an increase of 6.9% in one year, on the back of 51.4% growth y-o-y.

During Q2FY18, Bank continued with the LCR maintenance at well above  80% regulatory requirement with daily average Liquidity Coverage ratio  of 90.6%, reflecting a healthy liquidity position.
Gross Non Performing Advances (GNPA) was at 1.82% (Rs. 2,720.3 Crores) and Net Non Performing Advances (NNPA) at 1.04% (Rs. 1,543.3 Crores).

NB:How was the quarter as a whole?

Rana Kapoor:For the first time ever, our profit numbers are past over 1000 crores. We have delivered another quarter of satisfactory performance with sustained earningsmomentum, increasing granularity and improving efficiency, driven by productivity gains from investment in Human Capital, Infrastructure and new age technologies.

This quarter has been robust in terms of P&L performance.

The increase in NPA and consequent provision is in conformity with RBI’s Annual Risk Based Supervision (RBS) exercise conducted for FY2017

NB:Your outlook for the coming quarters?

Rana Kapoor: Bank’s Asset Quality continues to demonstrate resilience after duly incorporating full impact of the RBI.

RBS observations for FY17, concluded in October 2017.

Going forward, the Bank’s ‘Digital’ focus will continue to drive our
strategy to deliver innovative solutions and rapidlycapture market
share across the new age Payment platforms and Digital ecosystems.

We are on track to achieve our target CASA ratio of 40% by
September 2018, well ahead of our earlier target date of March 2020.

We are taking steps to contain asset quality numbers. We are still
better than other banks in terms of asset quality numbers.

NB:What were the major expansionsfor the quarter?

Rana Kapoor: The Branch network stood at 1,040 branches as on September 30, 2017 an increase of 20 branches during the quarter and ATM Network stood at 1,823.

The bank raised Rs. 5,415 Crores through issue of Basel III compliant Tier-I (ATI) perpetual bonds with Greenshoe subscription exceeding the original issue size of Rs. 3,000 Crores and Rs. 4,000 Crores through private placement of Basel III Tier II Bonds in two tranches.

NB:What were the initiatives for the quarter?

Rana Kapoor:YES BANK launched the uber-exclusive, by invitation only Yes Private Credit Card on the most premium Mastercard World Elite platform.

The bank has partnered with Microsoft to deploy Office 365 and Microsoft Kaizala. Microsoft Kaizala is a product designed for large group communication in a chat interface and work management and integrates with Office 365.