4QFY2012 Result Update | Banking

April 26, 2012

Yes Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT 4QFY12 448 430 272 3QFY12 428 399 254 % chg (qoq) 4.8 7.9 7.0 4QFY11 349 349 203 % chg (yoy) 28.6 23.4 33.6

BUY
CMP Target Price Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Banking 12,605 1.3 389/231 450,719 10 17,131 5,189 YESB.BO YES@IN

`357 `469 12 Months

Source: Company, Angel Research

Yes Bank reported a strong performance for 4QFY2012. The banks net profit grew by 33.6% yoy to `272cr, in-line with our estimates. Strong momentum in savings account deposits and maintenance of healthy asset quality were the key positive takeaways from the results. We recommend Buy on the stock. Momentum in savings account deposits keeps NIM stable sequentially: On a yoy basis, advances and deposit growth for the bank was below system-average at 10.5% and 7.0%, respectively. Credit substitutes portfolio for the bank, however, continued to grow at a strong pace (growth of 104.5% yoy). Savings deposits more than doubled sequentially to `2,501cr, with incremental saving deposits per branch for the bank increasing significantly from `1.0cr in 3QFY2012 to `3.6cr for 4QFY2012. The significant traction in SA deposits helped the bank maintain its cost of funds sequentially, despite tight liquidity conditions that prevailed during most of the quarter and additional borrowings during 4QFY2012. The banks investment book as a proportion of interest-earning assets increased during 4QFY2012 on the back of healthy growth in credit substitutes, which led to sequentially flat yields on assets for the bank. Consequently, the banks NIM remained flat sequentially at 2.8%. During 4QFY2012, the banks non-interest income grew strongly by 26.0% qoq to `266cr on account of strong growth in financial markets (up 42.4% qoq) and financial advisory (up 26.6% qoq) based fee income. Outlook and valuation: Yes Bank has taken challenges of building a retail deposit base head-on, nearly doubling its branch network over the past 15 months to 356 branches and aggressively increasing savings rate to 7% as a smart customer-acquisition strategy. In our view, the bank is in a sweet spot, wherein retail franchise growth is likely to remain strong as large banks cede some market share to it rather than offering higher savings rates to their entire customer base. Even with retail growth prospects being stronger now, valuations at 1.8x FY2014E ABV are still cheaper than peers such as IndusInd Bank (2.4x FY2014 ABV) as well as its own historical median (2.5x over FY2007-FY2012), providing a favorable risk-return trade-off in our view. Hence, we recommend Buy on the stock with a target price of `469. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 26.1 20.4 47.2 6.4

Abs. (%) Sensex Yes Bank

3m 0.1 8.9

1yr (12.5) 12.6

3yr 50.9 367.1

FY2011 1,247 58.2 727 52.2 2.7 20.9 17.0 3.3 1.5 21.1

FY2012 1,616 29.6 977 34.4 2.6 27.7 12.9 2.7 1.5 23.1

FY2013E 2,103 30.2 1,196 22.4 2.7 33.9 10.5 2.2 1.4 23.1

FY2014E 2,731 29.9 1,466 22.5 2.8 41.5 8.6 1.8 1.4 23.3

Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com

Varun Varma
022 3935 7800 Ext: 6847 varun.varma@angelbroking.com

Sourabh Taparia
022 3935 7800 Ext: 6872 Sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

Yes Bank | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance summary

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income - Financial markets - Financial advisory - Transaction banking - Retail and others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 1,785 1,196 578 6 4 1,337 448 266 48 81 64 19 715 284 134 151 430 28 402 130 272 32.4 1,684 1,173 506 5 1 1,256 428 211 41 98 61 14 639 240 122 118 399 22 376 122 254 32.5 6.0 2.0 14.3 28.5 678.9 6.4 4.8 26.0 17.8 (17.6) 4.9 30.8 11.8 18.3 9.9 27.1 7.9 27.4 6.7 6.3 7.0 (14)bp 1,223 888 327 6 1 874 349 187 41 54 50 17 535 186 103 83 349 43 306 102 203 33.4 46.0 34.7 76.9 4.5 231.3 52.9 28.6 42.6 17.8 50.7 28.3 7.5 33.5 52.4 29.8 80.3 23.4 (34.2) 31.5 27.4 33.6 (106)bp

Exhibit 2: 4QFY2012 Actual vs. estimates

Particulars (` cr) Net interest income Other income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 448 266 715 284 430 28 402 130 272

Estimates 454 230 684 265 419 27 392 124 267

Var. (%) (1.3) 15.6 4.4 7.1 2.7 3.8 2.6 4.7 1.6

April 26, 2012

Yes Bank | 4QFY2012 Result Update

Exhibit 3: 4QFY2012 performance analysis

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Savings deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Yield on advances Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%)
Source: Company, Angel Research

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 37,989 49,152 77.3 2,501 7,392 15.0 17.9 9.9 12.5 9.0 2.8 39.8 84 0.2 17 0.05 79.2 35,868 46,929 76.4 1,203 5,914 12.6 16.1 9.2 12.4 8.9 2.8 37.6 72 0.2 14 0.04 80.0 5.9 4.7 86bp 108.0 25.0 244bp 181bp 70bp 10bp 10bp 0bp 219bp 16.4 2bp 21.2 1bp (82)bp 34,364 45,939 74.8 851 4,751 10.3 16.5 9.7 10.7 7.8 2.8 34.8 81 0.2 9 0.0 88.6 10.5 7.0 249bp 194.0 55.6 470bp 144bp 20bp 180bp 120bp 0bp 493bp 4.1 (1)bp 90.8 2bp (946)bp

Customer assets growth remains healthy

On a yoy basis, advances and deposit growth for the bank was below system-average at 10.5% and 7.0%, respectively. Loan growth was primarily driven by growth in branch banking, which increased by 67.7% yoy. Growth in both the corporate segment and commercial segment remained muted on a yoy basis; however, the bank continued to grow its credit substitutes portfolio at a strong pace (up 104.5% yoy). Consequently, total customer assets (loans + credit substitutes) registered healthy growth of 20.3% yoy.

Exhibit 4: Balance sheet yoy growth remain muted in 4QFY12

(%) 80.0 60.0 40.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Exhibit 5: ...however share of branch banking improved

(%) 100 80 60 40 65 63 61 63
Corp. and Insti. Banking Commercial Banking Branch Banking

12 23

12 24

15 24

15 21

18 22

54.8

26.1

12.7

15.3

71.4

44.1

10.2

18.9

7.0

20.0 -

10.5

20 -

60

Advances yoy growth (%)

Source: Company, Angel Research

Deposits yoy growth (%)

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

Source: Company, Angel Research

April 26, 2012

Yes Bank | 4QFY2012 Result Update

Strong traction deregulation

in

savings

deposits

post

savings

rate

The bank had aggressively hiked savings account interest rates immediately post the de-regulation, which is leading to a paradigm shift in the banks franchise from a predominantly wholesale franchise to one that will increasingly have a much needed retail play as well. Highlighting the strong traction, savings account deposits more than doubled sequentially to `2,501cr (almost tripled on an absolute basis since the savings deposit rate deregulation in October 2011). The bank opened ~1lakh new accounts during 4QFY2012 as compared to the quarterly run-rate of ~25,000 prior to savings rate deregulation. In fact, incremental saving deposits per branch for the bank increased from `1.0cr in 3QFY2012 to `3.6cr for 4QFY2012 and was higher than the `1.8cr achieved by IndusInd Bank during the quarter. Consequently, CASA ratio for the bank increased substantially by 244bp qoq (470bp yoy) to 15.0. The share of retail deposits (CASA and retail banking term deposits) has now risen to 32.7% of total deposits from 23.5% a year ago, thereby reducing the banks dependence on higher costing bulk corporate deposits. During the quarter, the bank opened 25 branches (taking its network size to 356 branches). Management has guided for annual additions of 125+ branches going forward.

Exhibit 6: CASA deposits growth picks up strongly...

(%) 105.0 68.6 49.8 35.0 19.7 46.5 55.6

Exhibit 7: ...leading to a 244 bp qoq jump in CASA ratio

(%)
16.0 14.0 12.0 10.3 10.0 8.0 6.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 10.9 11.0 15.0

70.0

12.6

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 8: Incremental saving account deposits for Yes Bank higher than IndusInd
Particulars Yes Bank IndusInd Bank SA 4QFY12 2,501 4,694 SA 3QFY12 1,203 3,977 SA qoq (%) 108.0 18.0 Branch 356 400 Inc SA/ branch in 4QFY12 3.6 1.8 Inc SA/ branch in 3QFY12 1.0 1.9

Source: Company, Angel Research

April 26, 2012

Yes Bank | 4QFY2012 Result Update

NIM flat on a sequential basis

The significant traction in savings account deposits helped the bank maintain its cost of funds sequentially (up marginally by 10bp qoq) despite the tight liquidity conditions that prevailed during most of the quarter and additional borrowings during 4QFY2012. The banks investment book as a proportion of interest earning assets increased during the quarter on the back of healthy growth in credit substitutes, which led to sequentially flat yields on assets for the bank. Consequently, the banks NIM remained flat sequentially at 2.8%.

Exhibit 9: Rise in cost of funds by 10bp qoq...

(%) 9.0 8.0 7.0 6.0 5.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 7.8 8.5 8.6 8.9 9.0

Exhibit 10: ...offset by 10bp rise in YoA, leading to flat NIM

(%) 3.0 2.8 2.8 2.9 2.8 2.8

2.8

2.6

2.4 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Non-interest income growth remains strong

During 4QFY2012, the banks non-interest income grew strongly by 26.0% qoq to `266cr on account of strong growth in financial markets (up 42.4% qoq) and financial advisory (up 26.6% qoq) based fee income. The traction in fee income was primarily on account of higher loan sell-downs, debt syndication and underwritings during the quarter. Gain from sale of corporate and government bonds also led to higher treasury income for the bank during 4QFY2012. As of 4QFY2012, the banks credit substitute portfolio stands at ~`8,000cr. The expected downward trajectory in interest rates going ahead could lead to higher MTM gains for the bank on its credit substitute portfolio (average duration of 2.5 years).

Exhibit 11: Overall other income growth remains healthy at 42.6% yoy
Particulars (` cr) Financial markets Financial advisory Transaction banking Retail and others Other income 4QFY12 69 102 70 26 266 3QFY12 48 81 64 19 212 % chg (qoq) 42.4 26.6 9.5 36.9 26.0 4QFY11 24 77 65 20 187 % chg (yoy) 185.5 32.1 7.0 27.4 42.6

Source: Company, Angel Research

April 26, 2012

Yes Bank | 4QFY2012 Result Update

Strong asset quality maintained

The bank maintained its strong asset-quality profile during the quarter as well, with gross NPA ratio and the net NPA ratio remaining stable at marginal 0.22% (0.2% in 3QFY2012) and 0.05% (0.04% in 3QFY2012), respectively. Provision coverage ratio (excluding technical write-offs) remained healthy at 79.2%. Restructured advances remained under control at 0.53% of average total assets.

Exhibit 12: Asset quality still amongst the best in industry

Gross NPA (` cr, LHS) 100 80 60 40 20 81 9 4QFY11 56 3 1QFY12 69 14 2QFY12 72 14 3QFY12 84 17 4QFY12 89 80 80 79 95 Net NPA (` cr, LHS) NPA coverage % (RHS) 100 90 80 70 60 50

Source: Company, Angel Research

Operating costs rise on one-off expenses related to borrowing fees

Cost-to-income ratio for the bank increased by ~220bp qoq (due to one-off expense related to fees on tier-2 and foreign currency borrowings during 4QFY2012), however it remained healthy at 39.8%. The bank recruited 629 employees in 4QFY2012, leading to a 29.8% yoy increase in staff expenses. Considering the robust branch expansion plans (annual additions of 125+ branches) and continued recruitment of employees, we have factored in operating expenses growth to be 37.0% yoy and 31.0% yoy for FY2013 and FY2014, respectively.

Exhibit 13: Branch expansion gaining traction

400 350 300 250 200 150 100 50 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 214 255 305 331 356

Exhibit 14: Opex ratios increase on a yoy basis

Opex to avg assets (%, RHS) 42.5 40.0 37.5 34.8 35.0 32.5 30.0 1.3 1.3 1.4 1.4 1.6 1.0 37.4 35.6 1.2
37.6

Cost-to-income ratio (%)

39.8

1.6

1.4

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

April 26, 2012

Yes Bank | 4QFY2012 Result Update

Capital adequacy continues to be strong

The banks capital adequacy ratio (CAR) continued to be strong at 17.9%, with tier-I ratio at 9.9%. The improvement in tier-1 ratio (9.7% in 3QFY2012 including 9MFY2012 profits) was aided by issue of `150cr of tier-1 perpetual bonds during the quarter. Overall, the bank raised `2,210cr of tier-I and tier-II bonds in FY2012, which according to management is expected to support the banks growth for the next 12-18 months. Yes Bank plans to raise `2,000-2,500cr of equity capital via GDR or QIP route in the later part of the current fiscal to support its future business growth.

Exhibit 15: Capital adequacy remains healthy

Tier-I CAR (%) 20.0 16.5 15.0 6.8 10.0 6.6 6.6 6.9 16.2 16.0 16.1 8.0 Tier-II CAR (%) 17.9

5.0

9.7

9.6

9.4

9.2

9.9

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

April 26, 2012

Yes Bank | 4QFY2012 Result Update

Investment arguments
Savings rates deregulation aiding retail customer acquisition
Yes Bank had aggressively hiked savings interest rates immediately post the deregulation, which is leading to a paradigm shift in the banks franchise from a predominantly wholesale franchise to one that will increasingly have a much needed retail play as well. Savings rate deregulation does not allow banks to offer differential rates to different groups of customers and, hence, it would be unfavorable for larger players to offer higher rates to their entire customer base just to protect some amount of market share from competition from smaller players such as Yes Bank (~33,000 branches and `8lakh cr savings deposits for large banks compared to ~350 branches and `2,501cr savings deposits for Yes Bank). While the loss in market share for larger players would be minor, the gain for smaller banks such as Yes Bank offering higher savings rates is expected to be significant, especially considering the low bases of their retail franchises. Yes Bank has witnessed strong traction in its savings deposits with SA deposits more than doubling sequentially and almost tripling on an absolute basis since the savings rate deregulation in October 2011. Even incremental saving deposits per branch for the bank increased from `1.0cr in 3QFY2012 to `3.6cr for 4QFY2012 and was higher than the `1.8cr achieved by IndusInd Bank during the quarter. We expect the strong pace in savings deposit accretion for the bank to continue going ahead as well.

A-list management and ability to raise capital

Yes Bank has an A-list top management team, which brings to the table rich experience from the best banks in India, including Bank of America, ABN AMRO, Citibank, ICICI Bank, Rabo India and HDFC Bank. The banks performance also benefits from managements ability to raise equity capital (at increasing, book-accretive premiums).

Book-accretive equity capital raising likely in the next 12 months

Yes Bank plans to grow its customer asset base at 30-35% for the next 2-3 years, leading to higher capital requirements. The bank is planning to raise `2,000-2,500cr of equity capital via GDR or QIP route in the later part of the current fiscal to support its future business growth. Capital raising is likely to be book-accretive and will aid in further enhancing the bank's credit market share going forward.

Strong asset quality

The bank has maintained strong asset quality in spite of growing at a fast clip over the past few years (gross and net NPA ratios at just 0.22% and 0.05%, respectively), which has been aided by the smaller size of its balance sheet so far. The banks provision coverage ratio even without inclusion of technical write-offs remained healthy at 79.2% in 4QFY2012. The bank has also been astute in managing its growth rate and asset-liability durations in-line with the changing external environment.
April 26, 2012

Yes Bank | 4QFY2012 Result Update

Investment concerns
Medium-term downside risks to RoAs
The banks credit market share has steadily increased on the back of a robust credit CAGR of 41.7% over FY2008-12, which at 0.8% represents an increasingly meaningful market share. The bank has so far managed to source loans with relatively above-average profitability, keeping its NIM above 2.7% since FY2009, in spite of just 15.0% CASA ratio. Going forward though, as the size of the balance sheet increases, we believe RoA compression remains a risk to the bank. Having said that, the recent deregulation of savings account rates and the consequent strong accretion of SA deposits for Yes Bank are likely to aid in countering this impact.

Outlook and valuation

Yes Banks growth as well as managements track record has been excellent, so far. However, as the banks balance sheet size continues to increase, it remains to be seen whether it can continue to source as profitable lending opportunities as its current loan portfolio. On the liabilities side, building a savings deposit franchise involves execution risks. However, Yes Bank has taken challenges of building a retail deposit base head-on and has nearly doubled its branch network over the past 15 months to 356 branches and aggressively increased savings rate to 7% as a smart customeracquisition strategy. The bank has been able to almost triple its savings deposits base since the savings deposit rate deregulation in October 2011. In our view, the bank is in a sweet spot, wherein retail franchise growth is likely to remain strong as large banks cede some market share to it rather than offering higher savings rates to their entire customer base. Even with retail growth prospects being stronger now, valuations at 1.8x FY2014E ABV are still cheaper than peers such as IndusInd Bank (Bloomberg consensus of 2.4x FY2014 ABV) as well as its own historical median (2.5x over FY2007-FY2012), providing a favorable risk-return trade-off in our view. Hence, we recommend Buy on the stock with a target price of `469.

Exhibit 16: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages
Source: Angel Research

Earlier estimates FY2013 27.0 28.0 19.5 2.8 27.4 33.8 33.8 0.5 FY2014 29.0 29.0 23.5 2.9 31.0 34.0 34.0 0.7

Revised estimates FY2013 24.0 25.0 20.1 2.7 29.0 37.0 37.0 0.5 FY2014 25.0 25.0 25.1 2.8 27.7 31.0 31.0 0.8

April 26, 2012

Yes Bank | 4QFY2012 Result Update

Exhibit 17: Change in estimates

Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2013 FY2014 Earlier Revised Earlier Revised Var. (%) Var. (%) estimates estimates estimates estimates
2,115 1,046 3,161 1,222 1,939 174 1,766 573 1,193 2,103 1,106 3,209 1,278 1,932 161 1,771 574 1,196 (0.6) 5.7 1.5 4.5 (0.4) (7.3) 0.3 0.3 0.3 2,748 1,371 4,118 1,638 2,481 313 2,168 704 1,465 2,731 1,413 4,144 1,674 2,470 301 2,170 704 1,466 (0.6) 3.1 0.6 2.2 (0.4) (3.8) 0.1 0.1 0.1

Exhibit 18: P/ABV band

600 500 400 300 200 100 0 Price (`) 1x 1.5x 2x 2.5x 3x

Dec-05

Aug-07

Dec-10

Jul-05

Nov-08

May-06

May-11

Aug-12

Apr-09

Mar-07

Jul-10

Mar-12

Oct-06

Feb-10

Sep-09

Oct-11

Jan-08

Jun-08

Source: Company, Angel Research

April 26, 2012

Jan-13

10

Yes Bank | 4QFY2012 Result Update

Exhibit 19: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Neutral Buy Neutral Buy Buy Accumulate Buy Buy Buy Buy Neutral Buy Buy Accumulate Accumulate Buy Neutral Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 1,086 408 541 842 24 357 165 115 767 331 51 441 96 401 91 104 212 87 903 235 849 2,159 98 76 219 64 55 Tgt. price (`) 1,550 1,135 469 205 125 943 392 62 532 508 118 117 240 104 296 1,138 2,593 128 266 87 Upside (%) 42.7 34.9 31.5 24.6 8.3 23.0 18.4 21.7 20.7 26.7 29.8 12.8 13.3 19.7 26.2 34.0 20.1 30.0 21.4 37.0 FY2014E P/ABV (x) 1.5 1.0 3.1 1.4 1.0 1.8 0.6 0.7 0.9 0.8 0.6 0.7 0.8 0.6 0.6 0.6 0.7 0.5 0.8 0.5 0.8 1.4 0.6 0.7 0.7 0.5 0.7 FY2014E Tgt P/ABV (x) 2.2 1.9 2.4 0.8 0.8 1.1 1.0 0.8 0.9 0.7 0.7 0.7 0.8 0.7 0.7 1.1 1.6 0.8 0.9 0.7 FY2014E P/E (x) 8.0 7.1 15.2 10.8 6.0 8.6 4.0 4.3 5.0 5.1 3.8 4.6 4.8 3.6 3.6 4.3 4.3 4.1 4.6 3.9 4.7 8.0 3.6 4.0 4.4 2.9 4.8 FY2012-14E EPS CAGR (%) 16.5 13.0 27.0 19.8 6.7 22.5 (2.1) 6.5 12.2 21.3 26.8 10.9 45.7 2.5 6.2 22.7 5.4 29.9 8.8 17.1 8.8 23.6 8.7 7.7 27.2 11.4 14.2 FY2014E RoA (%) 1.5 1.3 1.7 1.4 0.9 1.4 1.0 1.0 1.1 0.8 0.9 0.9 0.5 0.8 0.9 0.9 1.2 0.6 1.4 0.8 1.1 1.0 0.8 0.7 0.8 0.7 0.5 FY2014E RoE (%) 20.4 14.5 22.1 16.2 17.7 23.3 17.0 16.7 19.2 16.5 17.5 16.7 13.8 16.2 16.9 14.8 18.2 13.9 18.6 13.6 18.5 19.1 17.2 16.2 17.4 16.0 13.2

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF

April 26, 2012

11

Yes Bank | 4QFY2012 Result Update

Income statement
Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY08 331 92.9 361 79.7 691 85.8 341 76.3 350 96.0 44 24.9 306 113.3 106 34.7 200 111.9 FY09 511 54.6 435 20.6 946 36.9 419 22.7 528 50.7 62 41.6 466 52.0 162 34.8 304 51.9 FY10 788 54.1 576 32.3 1,363 44.1 500 19.5 863 63.6 137 121.6 726 55.9 249 34.2 478 57.2 FY11 1,247 58.2 623 8.3 1,870 37.2 680 35.9 1,190 37.9 98 (28.2) 1,092 50.3 365 33.4 727 52.2 FY12 1,616 29.6 857 37.5 2,473 32.2 933 37.2 1,540 29.4 90 (8.1) 1,450 32.8 473 32.6 977 34.4 FY13E 2,103 30.2 1,106 29.0 3,209 29.8 1,278 37.0 1,932 25.4 161 78.6 1,771 22.1 574 32.4 1,196 22.4 FY14E 2,731 29.9 1,413 27.7 4,144 29.1 1,674 31.0 2,470 27.9 301 86.7 2,170 22.5 704 32.4 1,466 22.5

Balance sheet
Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY08 296 1,023 13,273 61.5 986 728 677 16,982 959 668 5,094 9,430 49.9 101 730 16,982 52.9 FY09 297 1,327 16,169 21.8 2,189 1,513 1,405 22,901 1,278 645 7,117 12,403 31.5 131 1,327 22,901 34.8 FY10 340 2,750 26,799 65.7 2,564 2,185 1,745 36,383 1,995 678 10,210 22,193 78.9 115 1,191 36,383 58.9 FY11 347 3,447 45,939 71.4 3,333 3,358 2,583 59,007 3,076 420 18,829 34,364 54.8 132 2,186 59,007 62.2 FY12 353 4,324 49,152 7.0 6,002 8,154 5,677 73,662 2,333 1,253 27,757 37,989 10.5 177 4,153 73,662 24.8 FY13E 353 5,335 61,440 25.0 7,503 10,111 7,336 2,458 1,566 35,541 47,106 24.0 215 5,192 25.0 FY14E 353 6,555 76,800 25.0 9,337 12,639 8,899 3,072 1,949 43,958 58,882 25.0 259 6,461 24.4

92,078 114,582

92,078 114,582

April 26, 2012

12

Yes Bank | 4QFY2012 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE 2.4 0.3 2.0 0.4 2.5 2.1 4.6 2.4 2.2 0.8 1.4 13.3 19.0 2.6 0.3 2.3 0.7 3.0 1.4 4.4 2.1 2.3 0.8 1.5 13.6 20.6 2.7 0.5 2.2 0.3 2.5 1.6 4.1 1.7 2.5 0.8 1.6 12.6 20.3 2.6 0.2 2.4 (0.1) 2.3 1.4 3.7 1.4 2.3 0.8 1.5 13.9 21.1 2.4 0.1 2.3 0.0 2.3 1.2 3.6 1.4 2.2 0.7 1.5 15.7 23.1 2.5 0.2 2.3 0.0 2.4 1.3 3.7 1.5 2.1 0.7 1.4 16.0 23.1 2.6 0.3 2.4 0.0 2.4 1.3 3.7 1.6 2.1 0.7 1.4 16.4 23.3 52.8 8.0 34.9 6.6 25.4 3.9 0.4 17.0 3.3 0.7 12.9 2.7 1.1 10.5 2.2 1.3 8.6 1.8 1.7 6.8 44.6 10.2 53.9 14.1 1.5 20.9 2.5 27.7 4.0 33.9 4.5 41.5 6.0 91.0 109.3 132.5 161.1 195.7 0.1 0.0 0.2 0.0 80.0 0.7 0.4 0.9 0.3 48.5 0.3 0.1 0.9 0.3 78.4 0.2 0.0 0.2 0.1 88.6 0.2 0.0 0.3 0.1 79.2 0.2 0.0 0.5 0.1 79.1 0.1 0.0 0.8 0.2 79.1 8.5 71.0 13.6 8.5 8.7 76.7 16.6 9.5 10.5 82.8 20.6 12.9 10.3 74.8 16.5 9.7 15.0 77.3 23.8 9.6 20.1 76.7 23.5 9.3 25.1 76.7 23.4 9.1 2.5 49.4 1.4 19.0 2.7 44.2 1.5 20.6 2.8 36.7 1.6 20.3 2.7 36.3 1.5 21.1 2.6 37.7 1.5 23.1 2.7 39.8 1.4 23.1 2.8 40.4 1.4 23.3 FY08 FY09 FY10 FY11 FY12 FY13E FY14E

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Yes Bank | 4QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Yes Bank No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

April 26, 2012

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