YES Bank managing director and CEO Rana Kapoor has said that 70% of the bank?s current mark-to-market exposures on derivatives is through large corporates and the rest 30% through the mid corporates. ?As per Reserve Bank of India definition, we do not have a single derivate exposure to any small to medium enterprise sector presently. As of March 31, 2008, we do not have a single delinquency in any of our derivative mark-to-market exposures.?
He added, ?However, in the market environment in which we are operating, we have made a contingent credit provision of Rs 17 crore to meet any future credit contingencies without any actual losses incurred by YES Bank.? Kapoor also clarified that the 4.93% stake by HSBC in YES Bank, mobilized by one of the private arms of HSBC ? HSBC Financial Services (Middle East), is not a strategic stake but purely a financial investment. The bank registered a 108.70% rise in its profit after tax at Rs 64.50 crore for the quarter ended March 31, 2008 as against Rs 30.90 crore profit after tax earned during the corresponding period last year. The total income earned during the quarter was Rs 494.3 crore , and net interest income and non interest income were Rs 388.50 crore and Rs 105.80 crore respectively. The bank?s profit after tax for the fiscal year 2007-08 increased by 112% at Rs 200 crore as against Rs 94.40 crore profit after tax for the financial year 2006-07.
YES Bank held an extra ordinary general meeting on March 10, 2008 to get shareholder approvals on its decision to issue 2 crore equity shares by way of qualified institutional placement. The move is expected to dilute 6.36% equity stake of YES Bank and also reduce the promoters stake by 2% at 32.2%.