Yes Bank - Risk to premium RoAs remain - Emkay

- Risk to premium RoAs of 1.5% - 1.6% remains from expected moderation in margins and other income (Fee based Income + Treasury) expected to remain subdued

- Yield curve has shifted upwards by 100bps, the cost increase is likely to be at 60bps (short term liabilities at 64%) which is not fully passed on to borrowers; - ve on NIMs

- Moderation in fee based income couple with expected MTM loss on AFS book will put pressure on other income which constitute 40% of the total income

- Risk to margins and moderation in other income expected to impact PAT and valuation adversely. At CMP, stock quotes at 1.7x/1.4x of its FY14E/FY15E ABV. Retain HOLD at TP of 460.

Source : Equity Bulls

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