Strong operating performance and improving asset quality to ensure healthy bottom-line growth for Yes Bank going ahead: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking):

"Yes Bank's Q1FY18 results have been in line with expectations. For five consecutive quarters the bank has been delivering loan growth above 30%, with growth in Q1FY18 coming in at 32%. Deposit growth also remained strong at 22.6%. Yes Bank has been aggressively expanding its CASA base and now the CASA ratio has gone up to 36.5% a gain of 690 bps over last year. One of the large cement accounts was recognized as NPAs during Q4FY17 and hence the asset quality has seen deterioration with GNPAs going up to 1.50% in Q4FY17 vs 0.85% in Q3FY17. However, during that time the management was fairly confident that the account will get regularized and accordingly there has been recovery from that account, because of which GNPAs has come down by INR 654 cr in absolute terms and 55 bps QoQ to 0.97%. With asset quality concerns easing and core operations remaining strong the earnings visibility of the bank has improved. The stock is trading at 2.7x its FY19E Book Value. We upgrade the stock to ACCUMULATE."

Shares of YES BANK LTD. was last trading in BSE at Rs.1712.55 as compared to the previous close of Rs. 1614.15. The total number of shares traded during the day was 813844 in over 22835 trades.

The stock hit an intraday high of Rs. 1722.8 and intraday low of 1606.3. The net turnover during the day was Rs. 1363805168.

Source : Equity Bulls

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