>Yes Bank (SUNIDHI)

Company Description:
YBL, India's new age private sector Bank, is an outcome of the professional entrepreneurship of its founder, Rana Kapoor in 2003. YBL has fructified into a 'full service' commercial Bank that has steadily built Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate Finance, Business and Transaction Banking, Retail and Wealth Management business lines across the country. During 2005, the bank had forayed into retail banking with launch of International Gold and Silver debit card in partnership with MasterCard International. YBL had entered the capital market with its initial public offer in June 05 at a price of Rs 45 (Rs 35 premium). YBL has 117 fully functional branches and expects to open another 35-50 branches.

Highlights:
Yes Bank is aggressively foraying into retail banking for deposits, while retail advances are not the focus. Its loan book is divided between corporate (57%) and small and medium enterprises (41%). As of Q3FY09, the top sectoral exposure is diversified between food and agri business (20%), engineering (18%), infrastructure and logistics (17%), life sciences and chemicals (8%), and technology media and telecom (12%).

The UAE-based private bank Mashreq has tied up with YB to launch global Indian banking services across UAE. The tie up will allow Mashreq Gold customers in the UAE to open rupee savings accounts and fixed deposits.

YBL also plans a foray into asset reconstruction business by the end of this year; this can boost its ‘other income’. The bank intended to increase its SME clientele to 1,000 by FY09 and plans to add 5,000 customers under its Urban-Micro Finance programme.

YBL has high quality assets, comfortable capital adequacy, robust other income and strong growth in advances in the current challenging scenario. Its NPA during 31st December 2008 stood at 0.15% and capital adequacy ratio at 14.6%.

Capital adequacy ratio continues to remain healthy at 15%. Further, the bank has raised hybrid tier-1 capital (innovative perpetual debt) of INR 1.6 billion recently and expects release of 80bps when it reports in Basel 2 by FY09.

To see full report: YES BANK