Arihant Capital's research report on Yes BankAdvances up 30%: Total Advances grew by 30.0% to 98,210 crore as at Q4FY16. Corporate banking accounted for 65.1% of the Advances portfolio while Retail & Business Banking constituted 34.9%. Total Deposits grew by 23% to Rs 111,720cr. The Bank’s CD ratio stood at 87.9%, while the (CASA) deposits grew by 48.7% y-o-y to 31,343 crore taking the CASA ratio to 28.1% this quarter up from 23.1% which was in Q4FY15. Further, SA deposits grew by 62.3% to Rs 20,418 crore from Rs. 12,580 crore. Aided by strong growth in advances and deposits, NII jumped 27% to Rs 1,241cr and non-interest income increased by 36% and stood at Rs 803 crs. Increase in other income is due to sharp rise in Retail banking fees and income from financial markets. Bank reported another consistent growth during the quarter; we expect momentum will be continued in coming quarters. We believe improvement in liability franchise, loan composition, consistent balance sheet growth, and superior asset quality. We have valued bank at 3(x) its FY17 adj book value and have arrived at fair value of Rs 1096 per share. At CMP of Rs 944, the stock is trading at P/ABV(x) of 2.6x its FY17 adjusted book value of Rs 365 per share. We recommend ACCUMULATE rating on stock. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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