Note : Application made using third party UPI or ASBA Bank A/c are liable to be rejected.
Issue Highlights
Incorporated on November 21, 2003 Yes Bank Limited (“Yes Bank”) is India’s 6th Largest Private Sector Bank on the basis of total standalone assets as at March 31, 2019.
On March 5, 2020, the Central Government, based on the RBI's application, imposed a moratorium effective from March 5, 2020 up to and inclusive of April 3, 2020. The RBI superseded the board of directors of the Bank on March 5, 2020. Subsequently, on March 6, 2020, the RBI proposed a draft reconstruction scheme. Further on March 13, 2020, the Government of India notified the Yes Bank Ltd Reconstruction Scheme 2020 (“Reconstruction Scheme”). Among other things, the Reconstruction Scheme provided for cessation of the imposed moratorium with effect from March 18, 2020. The Board was reconstituted with 8 eminent professionals. Since the implementation of the Reconstruction Scheme, they have formulated new strategic objectives which aim at augmenting deposit base and liquidity buffers, optimizing operating costs, building stronger governance and underwriting framework and focusing on stressed assets resolution over the next 6 to 12 months.
State Bank of India and other investors in the Scheme, including HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, The Federal Bank, Bandhan Bank and IDFC First Bank invested an amount aggregating to ? 10,000 crore in the Bank.
In April 2020, they completed a reorganisation where multiple corporate products and relationship units have been aggregated into the Wholesale Banking unit which will be asset-light, liability-led and transaction heavy.
The bank provides a knowledge-based approach to banking; invested in latest technology infrastructure and applications; and develop a scalable platform as they focus on its retail and MSME advances. As of March 31, 2020, it has 50 dedicated SME branches in SME hubs.
The Bank has a network of 1,135 branches and 1,423 ATMs. Its’ extensive network of branches include 250 hub branches, 850 spoke branches, and with approximately 85% of their branches with more than 3 years vintage
The shares will be listed on BSE and NSE.
Competitive Strength
Simplified organisation structure backed by marquee institutions and experienced leadership team
Differentiated technology platform leading to digital leadership
Well-established granular banking platform with a strong focus on retail and SME advances
Diverse and scalable revenue streams
Strong governance and underwriting framework
Knowledge - based approach to banking enabling cross -selling
Wide Pan India Presence
Award winning quality of service with customer centric approach
Key Business Strategies
Liability Led Business Model
Sustainable and diversified revenue generation
Focus on cost optimization
Enhancing brand value and strengthening corporate governance
Leverage digital capabilities to scale business
Strengthen risk management framework
Brief Financial Details* (In Cr)
As at March 31,
2020
2019
2018
Share Capital
2,510.09
463.01
460.59
Reserves as stated
19,184.87
26,424.40
25,291.91
Net worth
21,694.96
26,887.41
25,752.51
Deposits
105,311.17
227,557.90
200,688.60
Deposits Growth (%)
(53.72)%
13.39%
-
Borrowings
113,790.50
108,424.11
74,893.58
Borrowings Growth (%)
4.95%
44.77%
-
Interest Earned
26,052.02
29,623.80
20,268.60
Interest Earned Growth (%)
(12.06)%
46.16%
-
Net Profit/Loss for the year
(16,432.58)
1,709.27
4,233.22
Net Profit as % to revenue
(63.08)%
5.77%
20.89%
Net Interest Margin (%)
2.30%
2.97%
3.39%
Gross NPA (%)
16.80%
3.22%
1.28%
Net NPA (%)
5.03%
1.86%
0.64%
EPS (?) as stated
(56.11)
7.40
18.46
RoNW (%)
(81.94)%
6.49%
17.72%
Net Asset Value (?)
17.29
116.14
111.82
Source: RHP *Consolidated Statement For additional information & risk factors please refer to the Red Herring Prospectus
0
Comment