In view of some recent media reports about YES BANK, financial experts opine that the bank has strong business fundamentals. YES BANK has taken proactive steps to protect the interests of its shareholders, employees, partners and business associates. RBI and the bank’s Board of Directors and other stakeholders will continue to support the initiatives taken by YES BANK and its MD & CEO, Rana Kapoor.
Consistent track record
YES BANK has delivered consistent results since the time it started operations in 2004. Its performance has been quite good across all key deliverables such as growth, profitability, operating efficiency, credit risk, capital adequacy, etc. YES BANK joined the big league in FY 2016, when it was classified as a large bank. In the large bank phase, YES BANK’s Advances CAGR is 39.1 %; Deposits CAGR – 30.1 %; PAT CAGR – 28.2 %; and RoE – 19.7 %. YES BANK currently employs more than 20,000 people and the numbers are consistently growing.
Massive Capital Funds Base
YES BANK started with a capital funds base of just Rs 217 Crores (~$30 million) in 2004. However, with its consistent performance over the years, YES BANK has been able to dramatically increase its capital funds base, which is now an impressive Rs 50,000 crores (~$6.9 billion).
Top ratings by credit rating agencies
YES BANK has consistently received top ratings by leading credit rating agencies.
- July, 2018: CARE upgraded YES BANK’s long term domestic rating to AAA
- September 20, 2018: Moody’s reaffirmed YES BANK’s long term rating of Baa3 (stable outlook)
- September 21, 2018: ICRA reaffirmed YES BANK’s Domestic rating of AA+ (stable outlook)
Business expansion and diversification
YES BANK continues to expand and diversify its business, as it aims to achieve newer milestones. YES BANK recently received RBI approval to import gold/silver and to open international offices in Singapore and London. YES BANK has also received approval from SEBI to start Custodian of Securities and Mutual Fund business.
YES BANK has emerged as a top brand in India, which is one of its key strengths. Recently, YES BANK was ranked as the 22nd Most Valuable Indian Brand with a brand valuation of a staggering $ 2.62 billion. The rankings were published in WPP BrandZ Report 2018.
Experts and many rating agencies including JP Morgan has given a BUY call on Yes Bank Stock. Rana Kapoor, CEO of Yes Bank also emphasized through a tweet that he will be fully committed to the interests of the Bank and all its stakeholders. Rana Kapoor also said that he will never ever sell his Yes Bank shares, as Diamonds are Forver.
“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