By Geetika Sachdev
Giving a lot of hope & confidence to investors and stakeholders, Rana Kapoor of Yes Bank tweeted that he continue to remain fully committed to the interest of the Bank and all its stakeholders. He also said that “Even after I demit office as MD & CEO Yes Bank, I will never ever sell my Yes Bank shares”. He also said that he will eventually bequeath his Yes Bank promoter shares to his 3 daughters and subsequently to their children, with a request in his Will stating not to sell a single share, as diamonds are forever!
“Diamonds are forever,” says Yes Bank’s Rana Kapoor. He took to Twitter to talk about the promoter shares he owns in the bank.
— BloombergQuint (@BloombergQuint) September 28, 2018
Yes Bank has consistently delivered the highest benchmarks of excellence ever since its inception. It has demonstrated a consistent track record of excellent delivery of business as well as financial outcomes across a wide gamut of parameters, including capital adequacy, credit risk, profitability, operating efficiency as well as growth, among others. It is one of the fastest growing large banks in India – CAGR (FY 16-18) with Advances standing at 39% and Deposits at 30%. The Core Retail Advances grew at 122% CAGR (FY15-18), which constitutes 14 % of Total Advances (as on June’18).
If you observe their track record in raising and accreting capital across a range of instruments, the performance has been equally consistent. Their Capital Funds base is today ~ Rs. 50,000 Crores (~$6.9Bn), which started with a Capital Funds base of Rs. 217 Crores (~$30Mn) in 2004, (that also includes Rs. 3,042 Crores (~$420Mn) of Basel III compliant Tier II bonds ) that were recently raised by the Bank in September 2018.
While YES Bank’s stock price has a temporary dip due to baseless speculations and allegations, they’ve always been committed and receptive towards the adoption of international best prices, highest standards of service quality as well as operational excellence. For them, nothing is more valuable than their customers, and this can be reflected in their endeavour to sustain the highest standards in financial performance year on year. Today, it is India’s fourth largest private sector Bank with a pan-India presence across all 29 states and 7 Union Territories of India and for them, high quality, customer-centric as well as service-driven policies are of significance.
The Bank has always delivered robust growth through all its businesses, which they credit to their high-quality and efficient management and leadership team. Year on year, the Bank continues to invest in building a robust technology platform that is innovative, customer-friendly and secure from cyber threats. Now, that’s what makes it so efficient!
YES Bank has also been highly rewarded by the best-in-class institutions, which reaffirms more faith in its loyal customer base. Recently, the brand was declared the 22nd most Valuable Indian Brand by WPP BrandZ Report 2018, with a value of $ 2.62 billion. What’s more? There was a recent upgrade of its long-term domestic rating by CARE to AAA, which reflects the Bank’s sustainable growth-oriented business model. Additionally, International Ratings Agency, Moody’s also reaffirmed its long-term rating of Baa3, which spells a stable outlook; and similarly, Domestic Rating Agency ICRA also reaffirmed its Domestic rating of AA+, which means it has moved from being positive to stable. That’s quite a few accolades under its belt!
The Bank, in its latest statement, has also reiterated the Credit Cost guidance for FY19 at 50-70bps. In fact, the credit costs of the Bank were earlier contained at 50bps, 53bps and 76bps for FY16, FY17 and FY18 respectively. Also, the Gross Non-Performing Asset (NPA) was 1.31%, while the Net NPA ratio was 0.59% as on June 30, 2018. This makes the ratio the lowest across Banks in the country.
With their best-in-class policies and the high regard they hold for their customers, there’s really no reason to dismiss them. As they say, personal experience is what counts the most. On that note, I say YES to growth!
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