Prabhudas Lilladher Research report on Yes BankYes Bank reported extremely good set of results with total revenues growing 32% YoY, margins expanding by 10bp QoQ and asset quality deterioration remaining very much under control. Yes Bank has inarguably one of the best Net NPL ratio at 0.22% and have NIL amount outstanding under 5/25 or SDR. YES has further reduced the credit cost guidance for the year to 50bp from earlier projections of ~70bp without relying on an improvement in overall economic environment. CASA mix continues to gain traction and improved by 110bp QoQ to 26.6% led by strong 64% YoY growth in SA deposits while business growth also remain healthy at 25% YoY. We maintain BUY with PT of Rs900 based on 2.2x Sep‐2017E ABV.Capital‐raising will further support growth momentum; maintain ‘BUY’: Yes Bank raised Rs 15 bn as Tier‐II capital during the quarter and has board approval to raise Tier‐I capital up to US$1bn (Tier‐I: 10.9% currently) to support the growth momentum. We believe the bank has made conscious efforts to make its asset and liability franchise granular which will help improve margin profile and keep asset quality stable. Retain ‘BUY’ with PT of Rs900.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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