Buy Yes Bank; target of Rs 2131: KR Choksey

KR Choksey's research report on Yes Bank
The bank posted a robust advances growth of 32%, led by 48% growth in consumer banking and 33% growth in corporate banking. On the income front, NII grew by 44% yoy and 10.3% qoq, primarily led by NIM expansion on account of increase in CASA deposits (CASA at 36.8% vs. 29.6% for Q1FY17). NIM for the quarter stood at 3.7%, up 30 yoy and 10 bps qoq. Non-interest income saw a growth of 17.8% yoy and de-growth of 10% qoq.

Outlook

We thus assign the stock of Yes Bank a multiple of 2.7x FY20E ABVPS which values it at Rs. 2131 per share, offering an upside of 20%. We recommend to BUY the stock.

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