Buy Yes Bank; target of Rs 2123: Motilal Oswal

Motilal Oswal's research report on Yes Bank
Yes Bank’s (YES) NII grew 45% YoY (+10% QoQ) to IN R18.1b, helped by 30bp YoY NIM improvement (to 3.7%) and customer assets growth of 32% YoY (+5% QoQ). Strong NII and 13% beat on other income ( +17%  YoY) drove PPoP outperformance (+30% YoY; 6% beat). This was partly offset by higher -than -expected provisioning (INR1b of prudent provisioning), leading to PAT of  INR9.1b (5% beat, 32% YoY).

Outlook

We largely maintain earnings estimates and reiterate  Buy with a target  price of INR2 , 1 23 (3.2x  June  19)  – based on residual income model.

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