Axis Securities's research report on Yes BankYES Bank reported an in-line Q4FY16, with PAT of Rs 7.02bn (+ 27.4% YoY). NII growth (up 27% YoY) was strong driven by 30% YoY increase in loans and stable NIM (3.4%).Asset quality declined marginally, with GNPA(%) slipping 10bps to 0.76% (vs. 0.66% in Q3FY16). Credit cost at ~50bps for FY16 is one of the lowest in industry despite being a corporate lender. Retail and Business Banking gained further ground, together making up ~35% of loans. We expect YES to continue gaining market share, growing much ahead of the industry. Margin profile is likely to improve given traction in retail liabilities (targeting 40% CASA ratio by FY18) and growing reach due to investments in branch network (~20% addition every year). 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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