YES Bank raises cash
Wednesday, January 20, 2010
YES Bank came for a quick $250m QIP gathering INR 1200 crores from the market today with J P Morgan, Capital Est and the Merchant Banker Morgan Stanley subscribing to the issue. 60% of the order book has been reported as finalised on UTV.
Yes Bank's SME results indicate its bullishness on Infrastructure and Healthcare as well as Agri businesses. Yes Bank has decided to concentrate on smaller tickets and should thus not be leading credit mandates this year. At the current price of INR 272, the market is expecting a lot from this wunderkind.
The bank is going in for a capital raising even as its capital adequacy ratio as on December 31,2009 was at 16.19%. According to Yes Bank MD & CEO Rana Kapoor, “We are expanding at a fast pace. Our loan growth is 71% while our deposit growth has been 62.8%. We want to maintain a 45% CAGR for the next two years and 35% for the next three years thereafter.” via ET - Earnings - Banks
Yes Bank has grown credit at 71% in the December Quarter and would target a CAGR of 45% for the next year, that would leave a lot of interest in the stock..but they need more interesting customers , with most expansion on hold and branch infrastructure costs rising without acces like PSB banks and even ICICI Bank, which is otherwise becoming a laggard in financial and retail banking market share performance
[Tag Banks, Indian Banking, Banking, Bank-stocks]
[Category India, Banking]
India
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