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JP Morgan has an overweight rating on the stock with a target of Rs 925 per share stating that valuations are still reasonable despite the stock being up 25 percent year-to-date.
Yes Bank has traditionally been a corporate-focused lender. How was it then emerged as a bank with one of the healthiest banks despite the economic slowdown and ensuing NPA crisis?
Every bank in the industry should see some rise in provisioning, and a deterioration in asset quality, says Banking Analyst Hemindra Hazari.
YES Bank is likely to see net profit at Rs 689 crore in January-March quarter, up 25 percent from Rs 551 crore in corresponding quarter last fiscal. During the period, net interest income (NII) may rise 24.2 percent to Rs 1214 crore against Rs 977.1 crore in year ago period, according to a CNBC-TV18 poll.
In an interview with CNBC-TV18, Ravikant Bhat, Research Analyst, IDBI Capital, discussed his view on a Yes Bank and ICICI Bank, both of which recently reported quarterly earnings. Yes and ICICI posted a contrasting set of earnings.
Profit likely to slowdown due to higher provisions YoY. Gross non-performing loans (GNPLS) could see incremental worsening
Net interest income is seen rising 26.8 percent to Rs 1,085.8 crore compared to Rs 856 crore during same period as loan growth may continue being above industry average - at around 30 percent (against 35 percent in Q1). Net interest margin is expected to be above 3 percent.
Speaking to CNBC-TV18, Â Rajat Monga CFO, YES Bank says the bank has restructured two borrower's accounts in the road sector for the quarter, totalling to about 20-21 bps on the banks' loan book.
Yes Bank, on Wednesday, reported stable earnings with an increase in the net profit by 27.7 percent to Rs 551.2 crore.
The growth may also be aided by low base in the year-ago period. In Q1FY15, profit had increased by 9.5 percent and net interest income jumped 13.1 percent.
"We expect around 15 percent year-on-year profit after tax (PAT) growth for private banks with stable pre-provision operating profit (PPOP) growth. PSUs will likely have a tough quarter operationally with elevated asset quality stress along with pressure on net interest margins," said Nomura.
The company is well placed for growth and is a buy at current valuation, says Vaibhav Agrawal of Angel Broking.
Net interest income is expected to increase by 5.3 percent Q-o-Q (up 33.1 percent Y-o-Y) to Rs 957.5 crore, according to Motilal Oswal.
Net interest income is expected to increase by 2 percent Q-o-Q (up 28.8 percent Y-o-Y) to Rs 926.7 crore, according to ICICIdirect.
In Q4FY15 (January-March quarter), private sector lender YES Bank is expected to report similar growth to Q3. According to a CNBC-TV18 poll, profit is estimated at Rs 549 crore during March quarter, a growth of 27.6 percent over same quarter last year, supported by other income.
Yes Bank's Q3 numbers were marginally higher than analysts' expectations.
Private sector lender Yes Bank's third quarter profit is expected to rise by 24 percent to Rs 516 crore for the quarter ended December 2014, which is likely to be aided by treasury gains and net interest income. Profit in the year-ago period was Rs 415 crore.
Net interest income is expected to increase by 3.7 percent Q-o-Q (up 33.4 percent Y-o-Y) to Rs 887.9 crore, according to Motilal Oswal.
Vishal Goyal, Executive Director-Leading Banks & Financial Research, UBS India, expects private banks to have earnings similar to Q2.
Discussing the results, Manish Ostwal, Head of Research & Senior Analyst - Financials, KR Choksey Institutional Securities, said the bank has posted a strong set of numbers.
Loan growth is expected to be 20 percent in Q2FY15 year-on-year as against 23 percent in Q1FY15 while net interest margin is likely to be stable or improved on sequential basis.
Net interest income is expected to increase by 0.2 percent Q-o-Q (up 11.1 percent Y-o-Y) to Rs 746.6 crore, according to ICICIdirect.
Nilesh Parikh Edelweiss Financial Services recommends buying OBC given its valuations.
On analysing Larsen and Toubro's Q3 numbers, Dipen Sheth of HDFC Securities was pleasantly surprised to see traction in the Indian revenues of the company. However, going forward he is cautious on the stock and would book profits in the stock if it reaches the levels of Rs 1150-1200.
Yes Bank's chief financial officer Rajat Monga says his bank did not restructure any loans in the December quarter. Yes Bank's restructured loans are about 21 bps of its loan book, about Rs 109 crore in aggregate.