Yes Bank reported a very strong set of results in Q3 FY12 but it was pretty much expected. There hasn’t been a quarter where Yes Bank hasn’t reported a strong and better than expected numbers, atleast since I’ve started monitoring the stock and picked it as my top pick in the entire stock market space.

The following are key figures from Q3 FY12 results : - 

• Net Profits up 33% to 254 cr yoy.
• Net Interest Income up 32% to 427.6 cr yoy.
• Savings account deposits surged 99% yoy and 40% qoq due to it’s high savings deposit rates.
• CASA has moved up 46% qoq to 5913 cr which has moved the CASA ratio up 1 .6% to 12.6% now.
• Advances were up 15% and deposits were up 19% this quarter.
• Net NPAs were at super low 0.04% and gross NPAs were also very low at 0.20%.
• Yes Bank’s current basic EPS moved up to 25.82 and book value to 129.5

The above are clearly are very strong set of numbers, whether you talk about profits or income or just pick any figure out of there and it is really good. The bank maintains it’s NPAs at such a meager levels which is also best in the industry.

What I like the most about these numbers is the saving deposit increase which doubled in a year and went up 40% in a quarter. I am hoping to see much more rise in their saving deposits in the next few quarters because even today most of the banks are yet to touch their saving deposit rates and thus banks like Yes Bank that are offering 7% rate are going to see rapid rise in savings deposits. CASA has always been the main issue of Yes Bank and now that is seeing a substantial rise. If CASA improves every quarter, it is going to be easy for Yes Bank to continue to maintain such high profit growth as CASA is always going to improve their margins.

I expect Yes Bank to report an EPS of very close to 28 for full year FY12, unlike the expectations of various brokerages that say it is going to be around 26-27. Currently the stock is trading at 327 so this brings us to the current valuation of  11.8 as per FY12 EPS. If we look at book value, we expect to see a book value of around 138 for FY12 that means it is trading at close to 2.4 times the book. If someone is looking to enter Yes Bank, then wait for next correction in the markets and enter the stock.

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