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MOSL: Morning India (30/August/18): 1. AGIC: CEO Track Takeaways: Yes Bank | AU Small Finance Bank | Dabur India | Pidilite Industries | TeamLease; 2. AGIC: Management Says

MOrning India (30/August/18): 1. AGIC: CEO Track Takeaways: Yes Bank | AU Small Finance Bank | Dabur India | Pidilite Industries | TeamLease; 2. AGIC: Management Says

 

Today’s top research theme

Yes Bank: India’s new-age private sector bank buiding size, getting leaner

We hosted Mr. Rana Kapoor MD & CEO of Yes Bank. Key takeaways:

• Key strategic enablers during large bank growth phase – 1] Comprehensive product suite 2] Solution driven knowledge banking approach 3) Leadership in technology 4) Prudent risk management 5] Expansive reach 6] Experienced leadership 7] Vibrant Yes Bank brand
• CASA market share has more than doubled to 1.5% over FY16-18 while incremental loan market share during FY18 stood at 9.2%
• 60% of the book is linked to MCLR of which 2/3rd of the book is linked to 1yr MCLR. Margins are thus expected to recover from 3QFY19
• Credit cost has been under control over past several years and banks expects RoE to remain in 20%-22% range after FY20

Piping hot news

Rupee slips to record closing low of 70.59

• The rupee slipped to a record low of 70.64 against the dollar on Wednesday in intra-currency trades and staged only a limited recovery to end the session at 70.59. The Indian currency has now lost nearly 10% since January making it Asia’s worst performing currency. It was possible, dealers said, exporters may also have sold dollars allowing the rupee to recover some lost ground. Meanwhile, the yield on the benchmark bond rose over two basis points over Tuesday’s close of 7.89%, to 7.91%.