Yes Bank from KRC

Net profit of the bank has shown extraordinary growth 73% yoy in Q3FY07 driven by strong growth in advances and deposits, controlled operating expenses and expansion in the NIM. Advances of the bank has grown by 151% yoy for the first nine months of current fiscal and deposits by 07% and CASA deposits by 422% for the same period. The bank has maintained 0% Net NPA level. The bank has ROA of 1.4% far ahead than other rivate sector banks. At the current market price of Rs.123, the bank is trading at at a PER of 43.7x TTM FY07 and book value 4.5x TTM FY07, which is higher than ICICI Bank and UTI Bank and less than HDFC Bank. Though the bank seems to be richly priced as compare to other banks, we believe growth in the profitability of the bank will be higher as compare to other banks. Thus we give "BUY" rating to the stock at the current levels.