October 26, 2016 / 15:11 IST
Axis Direct's research report on Yes Bank Yes Bank continued its strong performance in Q2 with a PAT growth of 31% YoY at Rs 8 bn, driven by robust 30% NII growth and lower provisions (down 22% QoQ). NII growth was supported by a superior 38% YoY growth in advances and stable margin at 3.4%. Asset quality was pristine (GNPA up 4 bps QoQ to 0.83%) with improvement in underlying business performance (CASA ratio up at 30.3%, up 70 bps QoQ; cost to income declined 45 bps QoQ at 40.6%).
We expect Yes Bank to continue growing significantly ahead of the industry, thereby gaining market share. Management expects the mix of corporate and non-corporate to reach 55:45 by 2020 (currently 68:32). The bank has revised its credit cost guidance for FY17 down to 50 bps from 60 bps. Maintain BUY.
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