Date:10/04/2008 URL: http://www.thehindubusinessline.com/2008/04/10/stories/2008041052130600.htm

Back YES Bank to focus on current, savings accounts

Our Bureau

Mumbai, April 9 As on March 31, 2008, YES Bank’s Net Interest Margin increased to 3.06 per cent (2.6 per cent).

The share of low-cost deposits to total deposits (current account savings account) to total deposits is at 8 per cent. The bank is planning to increase its CASA share by 3-5 per cent every year, Mr Rajat Monga, Chief Financial Officer, said.

The Capital Adequacy Ratio is at 13.64 per cent, of which Tier I is 8.52 per cent.

“This capital will help us grow for the next three to four quarters. If there is a window to raise more capital, we will do so,” said Mr Rana Kapoor, Chief Executive Officer and Managing Director.

Under its non-interest income, 28 per cent is from financial advisory services, 36 per cent from financial markets, 16 per cent - transaction banking and trade finance, distribution of third party products - 14 per cent and other income - 6 per cent.

To go for QIP

The bank plans to issue two crore new shares later this year to top up the capital base and to meet growth through a qualified institutional placement issue.

Mr Monga said the bank is also open to a private placement issue, but there are no specific dialogues yet. “We have sought shareholder approval for QIP, but it can be done only if market has momentum,” he said.

The bank has a branch network of 67 branches and plans to increase it to 119 this year, and to 250 by 2010.

On Wednesday, shares of YES Bank closed at Rs 169.75, up 4.65 per cent from the previous close of Rs 162.2, on the BSE.