Views on Yes Bank 4QFY2016 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on Yes Bank 4QFY2016 Results:

"Yes Bank reported a healthy performance during the quarter with PAT growth of 27.4% YoY to INR 702.1cr, above our expectations. NII for the bank grew at healthy pace of 27.1% YoY, on account of strong growth in advances and Retail & CASA deposits. Reported NIM was stable at 3.4% for 4QFY16. CASA Ratio improved to 28.1% from 23.1% a year ago on the back of savings deposits robust growth of 62.3% Y-o-Y. Advances jumped 30% YoY to INR 98,210cr which is a healthy number given the sluggish credit growth in the economy. Non Interest Income continued to deliver healthy growth at 36.0% YoY while operating expenses grew by 30% YoY led by growth in staff as well as other operating expenses. On the asset quality front, Gross NPA and Net NPA ratios inched up to 0.76% and 0.29% respectively in 4QFY2016 as compared to 0.66% and 0.22% in 3QFY2016.

Though there was some stress visible in the asset quality during the quarter, it is still not a cause of concern to our view. Going forward, we have factored higher provisions and slippages given the bank's corporate exposure. Currently, the stock trades at 2.4x FY2017E ABV which seems to be fairly valued in our view. Hence, we maintain our NEUTRAL view on the stock."

Shares of YES BANK LTD. was last trading in BSE at Rs.943.65 as compared to the previous close of Rs. 944.95. The total number of shares traded during the day was 468476 in over 14340 trades.

The stock hit an intraday high of Rs. 952.2 and intraday low of 929.5. The net turnover during the day was Rs. 440590282.

Source : Equity Bulls

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