Below recent developments that happened in Yes Bank :
1. Succession Planning: The Bank is fully geared for the MD & CEO’s succession
• Pursuant to the Board of Directors meeting dated September 25, 2018, the two external experts of the ‘Search & Selection Committee’ will be finalised by October 7, 2018.
• ‘Search & Selection Committee’, assisted by a Global Leadership Advisory Firm, will evaluate both internal and external candidates and make suitable recommendations to the Board of Directors for onward submission to RBI.
• The ‘Search & Selection Committee’ and the Board of Directors are fully committed to expeditiously completing the said process within the current stipulated timelines of RBI.
2. Executive Directors:
Further to the Board of Directors recommendation vide meeting dated September 25, 2018, to appoint two senior leaders of the Bank as ‘Executive Directors’, the Bank has submitted its application to RBI for their approval.
3. Business Update - Key Parameters:
a. Satisfactory Financial Position as on September 30, 2018 (Unaudited Q2FY19):
i. Deposits grew ~ 41.0% YoY aggregating ~ Rs. 2.23 LakhCrores as on September 30, 2018. CASA Ratio stood at ~ 33.8% (growth of ~28.2% YoY)
ii. Loans & Advances grew by ~ 61.5% YoY, across the Corporate, IBU, MSME and Retail segments, aggregating to ~ Rs. 2.40 Lakh Crores as on September 30, 2018 of which Domestic Advances aggregated to ~ Rs. 2.20 Lakh Crores (growth of ~56.4% YoY)
iii. Gross NPA at ~1.35% of Gross Advances vis-à-vis 1.82 % as on September 30, 2017.
b. Outlook on Asset Quality is 'Stable':
Over the past few days, some unfounded speculations regarding the Bank’s Asset Quality have been brought to its notice. In this context, Management clarifies that the Asset Quality continues to be stable as stated in point 3. a. iii. above and reiterates its credit cost guidance at 50-70 bps for FY19 (76 bps for FY18).
c. Comfortable Liquidity / Funding Position:
The Bank has a Liquidity Coverage Ratio of ~101% as on September 30, 2018, which is 11% points in excess of the minimum regulatory requirement of 90%. The Bank’s average daily LCR for Q2 FY19 was ~100%. Bank’s liquidity position will further benefit from the recent RBI measures (announced on September 27, 2018) to ease systemic liquidity which will take effect on October 01, 2018.
Markets may say clear YES, given the great results posted by yes bank for Q2 - Deposits growth 41%, Casa ratio 33.8%, Loans growth 61%