Accumulate Yes Bank; target of Rs 860:KRChoksey

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26 Aug, 2025 12:21

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KRChoksey's research report on Yes BankDefying macro challenges, Q3FY16 earnings for YES Bank stood robust on the back of healthy NII, margin expansion and absence of significant negative surprises in asset quality unlike the peer set. Moreover, asset quality being in-line with RBI’s directive as cited by Management forms another big positive pertaining to strong Q3 earnings. However, meaningful corporate credit exposures and surge in absolute gross NPAs in the quarter will prompt us to maintain cautious outlook.Optically asset quality has stood healthy during the quarter for YES Bank. However, absolute gross NPAs and net NPAs increased more than 100% Y-o-Y, primarily because of the higher gross slippages to the tune of INR 2.9 bn and lower than anticipated recoveries at INR 916 mn during the quarter. That said, the gross NPA ratio at 0.66% in Q3FY16 as against 0.61% in Q2FY16 and net NPAs at 0.22% in Q3FY16 as against 0.20% in Q2FY16 stand one of the lowest amongst the peer set. Moreover, in-line with asset quality review of RBI, thes stressed asset formation has been negligible for the bank. That came as a huge respite especially at a time when asset quality woes Target Price (INR): 860 Potential Upside: 14.8% continue to haunt banking system.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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