Yes Bank - Q1FY14 Result Update - Nirmal Bang

- Results were higher than expectations on account of higher other income

- NII increased 3.3% QoQ and 39.6% YoY

- PBP increased 7.3% QoQ and 47.9% YoY

- The current liquidity tightening measures will lead to a significant increase in the bank's cost of funds as the CASA ratio is nearly 20% of deposits.

- Moreover, hardening of bond yields will also lead to lower non interest income.

- The bank will also witness mark to market losses on its corporate bond portfolio.

- Considering these issues, the stock has already been beaten down nearly 23% since the announcement of RBI liquidity measures

- Though the stock may remain under pressure in the near term, long term outlook for the bank looks good at current levels.

Source : Equity Bulls

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