To shore up its capital adequacy and also to fuel its growth, private sector Yes Bank plans to raise $150-200 million before the end of the current fiscal, a senior official said today.
"We plan to raise $150-200 million before the end of this fiscal. This will be through a qualified institutional placement (QIP)," Yes Bank Deputy Chief Financial Officer Jaideep Iyer told PTI here.
The new-age private lender's Tier I capital adequacy ratio stood at 9.3 per cent, Iyer said, adding the funds raised through the QIP would be used not only to shore up the bank's capital adequacy but also to fuel its growth.
"The kind of growth we have witnessed and also the kind of growth opportunities we are witnessing, we will definitely need capital," the Yes Bank official said.
The private sector bank clocked a 75.6 per cent growth in its net profit at Rs 111.7 crore, while its total net income grew 53.6 per cent to Rs 311.5 crore in Q2 FY 10.
Iyer said the bank has raised Rs 353 crore of capital in its Tier II structure in September.
This included Rs 260 crore raised through private placement issue of unsecured, redeemable, non-convertible, subordinated bonds to investors like LIC, IFCI and GIC.
"This has been one of our best quarters," the bank's Deputy Chief Financial Officer Jaideep Iyer told PTI in Mumbai.
Total advances of the bank grew 41.5 per cent to Rs 16,294 crore as on September 30 from the year-ago period. The Private sector lender's non-interest income rose to Rs 151.6 crore, against Rs 80.3 crore in the same period last year.
"Our asset quality is also high - our net NPAs are a meagre 0.08 per cent or less than Rs 20-crore while our gross NPAs at 0.31 per cent are just around Rs 50 crore," he said.
The bank's exposure to predominantly large and mid-sized corporates and its staying away from the consumer market has resulted in asset quality being under control, he said.
Credit growth was around 42 per cent on a y-o-y basis, Iyer said, adding, "we should maintain this kind of growth going forward."
"Credit growth should pick up in the remaining two quarters and the bank was on target to achieve a 35-40 per cent growth in FY 10," Iyer said.
Yes Bank's net interest margin in Q2 FY 10 stood at 3.1 per cent, marginally up on a q-o-q basis but significantly up from the 2.8 per cent in the year-ago period. The bank expects its net interest margin this fiscal to be in the range of 3-3.2 per cent, Iyer said.
