Buy Yes Bank; target of Rs 1950: JM Financial

JM Financial is bullish on Yes Bank has recommended buy rating on the stock with a target price of Rs 1950 in its research report dated 04 September 2017.

September 08, 2017 / 13:50 IST

26 Aug, 2025 12:21

Volume

Todays L/H

JM Financial's research report on Yes Bank

We met Yes Bank’s senior management recently and continue to remain positive about the bank’s execution abilities. Key takeaways from the meeting: a) Asset quality: The space to look out for any incremental stress will be the power sector (especially thermal) and some telecom sector companies. Management believes most of the NCLT cases will go for restructuring rather than liquidation and IRPs have already begun receiving restructuring proposals. b) International Financial Reporting Standards ( IFRS ) : While the timelines on implementation are still not clear , Yes Bank will need additional provisioning to the extent of INR 6bn - INR 7bn and will potentially have an impact on fee income recognition (15 % - 20% net impact on fees ).

Outlook

Yes Bank may have to face INR 6bn - INR 7bn in extra provisioning, which can be largely offset by the gains in its bonds portfolio. IFRS mandates that 50% of corporate fees will have to be amortised over the life of the asset. However, the net impact on fee recognition will be only to the extent of 15 % - 20%.

For all recommendations report, click here