Maintain 'hold' on Yes Bank - Geojit BNP Paribas Financial Services

- 1QFY13 performance is in line with market expectations.

- Net profit at 290 crore increased 34.3% yoy and 6.7% up qoq.

- Net interest income at Rs.470 crore increased 33.3% yoy and 5.3% up qoq. NIM was flat qoq at 2.8%.

- Other income increased 74.3% yoy and up 8.3% qoq. Other income increase is due to better treasury and advisory income.

- Loan growth subdued at 16.4% yoy and 1.4% qoq. Investment grew 73.9% yoy and 9.9% qoq.

- GNPA and NNPA increased 30-36% qoq but coverage remains healthy at 78% with restructured loans flat qoq at 0.5% of loans.

- The bank's retail strategy is paying off. Its CASA ratio improved to 16.3% from 15% on higher savings account (SA) accretion. But, the cost of funds remained stable at 9% qoq.

- Maintain 'hold' rating on the stock.

Source : Equity Bulls

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