Edelweiss' research report on Yes Bank
Yes Bank posted yet another stellar performance with Q4FY18 PAT surging 29% YoY to INR11.8bn. The quarter was marked by: a) robust & broad-based loan momentum (up >50% YoY), with RWA/Asset improving to 81.7% (86.6% in FY17), a credible show. Capital consumption looked optically higher (CET-1 dipped by 100bps), but was largely on higher growth; b) GNPLs traced back to sub-1.3% levels on controlled slippages (<1% run-rate) and sale to ARCs. Credit cost was restricted to 13bps (76bps for FY18); & c) swift move towards retailisation (CASA at >36%, retail/business banking up >50% & retail fees up >19% QoQ) sustained.
Outlook
We maintain our thesis that amidst noise on asset quality, bank’s strengths — loan underwriting & structuring and long-term business momentum (retailisation)— will aid it clock best-in-class return ratios. Maintain ‘BUY’ with TP of INR453.
For all recommendations report, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
