Yes Bank reported a healthy operating performance during the quarter with PAT growth of 30% yoy to Rs 4.82 billion, in-line with expectations. NII for the bank grew at healthy pace of 27.4% yoy, aided by 30% yoy growth in loans, as well as substantial capital raise to the tune of USD 500 million, which led to increase in NIM to 3.2% in current quarter as against 3% in 1QFY2015.

Deposits grew by 18.6% yoy, with CD ratio at 77.4% as on 2QFY2015. Non Interest Income grew by 13.3%, led by 45.6% yoy growth in Transaction Banking to Rs 1.32 billion and 70.5% growth in financial advisory. Opex grew by 34.4% yoy, with 39% yoy growth in other operating expenses.

Cost to income ratio increased to 40% in 2QFY2015 from 36.2% in 2QFY2014. As a result, pre-provision profits went up by 14.6% yoy. On the asset quality front, Gross NPA and Net NPA came in at 0.36% and 0.09% respectively in 2QFY2015 as compared to 0.33% and 0.07% IN 1QFY2015.

Commenting on the result, Vaibhav Agrawal, VP research, banking, Angel Broking, said, ''Restructured asset stands at Rs 1.16 billion in 2QFY2015; this represents 0.19% of loans as compared to 0.26% in 2QFY2014. At the CMP, the stock is trading at 1.9x FY2016E ABV. We recommend Buy rating on the stock."

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