Yes Bank - RoA's can sustain depending on softer interest rates - Emkay

Yes Bank Q4FY13 NII at Rs6.4bn / PAT at Rs3.6bn – beat consensus. Higher NII and non-interest income used to increase provision coverage ratio to 93% vs 80% in Q3FY13

- Margins at 3% were flat qoq and aided by 31% yoy growth in customer assets. Traction in retail segment has improved across all segments viz fee income, loan and deposit mix

- Key concerns: (1) core tier I ratio at 8.3% (2) guided at 50bps credit cost in FY14. Better NIMs and trading gains could take care of provisions but dilution looks imminent

- Incorporated capital infusion of US$400mn in FY14E. We believe the bank is well placed to deliver RoA / RoE in excess of 1.5% / 21% over FY13-15E. Retain HOLD with TP of 545

Shares of Yes Bank last traded in BSE at Rs.491.05, up by Rs.11.55 or 2.41%. The stock hit an intraday high of Rs.493 and low of Rs.475.

The total traded quantity was 4.45 lakhs compared to 2 week average of 3.38 lakhs.

Source : Equity Bulls

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