Hold Yes Bank; target of Rs 187: Arihant Capital

Arihant Capital's research report on Yes Bank

Yes Bank’s result for Q4FY19 under the leadership of new CEO was a reflection of management’s shift towards conservative approach and re-building the credibility of the bank. It has reported a loss of Rs 1507 cr, largely due to higher provisioning made during the quarter. The bank has made contingent provision of Rs 2100 cr towards a loan book of Rs ~10000 cr (BB & below rated) which was identified as stressed. These assets come under the corporate segment and include 5-6 accounts from real estate, infra and media & telecom sector.

Outlook

We downgrade our rating to ‘Hold’ from ‘Accumulate’ with a revised target price of Rs 187.