The growth was led by the corporate segment.
Loans grew 35% YoY, led by the corporate segment. Maybank Kim Eng noted that as CASA deposits jumped 51% YoY, CASA ratio improved 6.9ppts YoY to 37.2%.
"A recent equity-capital infusion rubbed off on margins, which expanded 30bps YoY to 3.7%. We believe there is room for further expansion, by lowering interest rates for savings accounts, currently at 6% vs peers’ 4-5%. Fees grew 40% YoY, led by corporate banking and cash management," Maybank Kim Eng said.
"YES’ FY17 NPL reporting diverged from the regulators’ assessment in a recent audit by INR64b. Of this, only INR12b slipped into NPLs in 2Q18, as the bank was able to recover and upgrade 74% of the divergence. Still, with the additional slippages, gross NPLs increased 80bps to 1.8%. Management attributed the divergence in its NPL reporting to a difference of opinion with the central bank," the brokerage firm added.
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