The 15 reports from 8 analysts offering long term price targets
for YES Bank Ltd. have an average target of 56.00. The consensus estimate
represents an upside of 300.00%
from the last price of 14.00.
Challenging macros could pose asset quality risks Yes Bank reported 1QFY21 results with NII at Rs19,081mn, down 16% YoY but up 50% QoQ. Noninterest income declined by 51% YoY primarily due to lower retail banking fee, which declined by 65% QoQ. Employee expenses were down 3% YoY/up 1% QoQ. 22% QoQ decline in operating expenses was led by cost rationalisation initiatives and lower business volume. Loan sourcing fees & professional fees declined by 42% QoQ and 75% QoQ, respectively. PPOP at Rs11,469mn was down 42% YoY. Provisions at Rs10,866mn declined by 39%YoY/78%QoQ. Covid provisions stood at Rs6.42bn. PAT was reported at Rs 454mn, down 60% YoY/98% QoQ. Advances declined by 4% QoQ to Rs1,645bn with retail constituting 23.4%. Deposits grew by 11% QoQ to Rs1,174bn. NPA levels...
Yes Bank Ltd. Issue Open: July 15 July 17, 2020, Price Band: Rs. Rs. 12 - 13 (Discount of Rs 1 for the eligible employees of the bank), Issue Size: 11,538,461,538 eq shares (Including Employee reservation of 166,666,667 shares
Cheap pricing comes with a baggage of uncertainties; AVOID NBIE Values your patronage- Vote for The Yes Bank hosted a virtual conference on the occasion of its Rs150bn capital raise. Incremental key Team in the Asia Money poll 2020. Click takeaways were not much. The management commentary was mostly a repetition of the previously Here stated strategy, which includes transferring stressed assets to a separate vertical, for which a subsidiary will be formed with possible equity participation by other stressed asset investors. We maintain our view that FY21 could be a year of loss for the bank even as the underlying structure and business strategy changes. At the current juncture, our biggest concern with Yes Bank is the...
Yes Bank has reported a profit of Rs26.3bn for 4QFY20 on the back of exceptional gains worth Rs63bn arising out of AT1 write-off. Adjusted for this exceptional gain, the bank has reported a net loss of Rs36.7bn in 4QFY20 compared to a loss of Rs185.6bn in 3QFY20 and a loss of Rs15.1bn in 4QFY19. Even as the bank reported an operating profit of Rs1.1bn in 4QFY20 compared to a marginal loss in 3QFY20, high provisioning kept net profitability in the negative. For FY20, total provisioning was Rs328bn, up 467% YoY, forming 9.3x of the operating profit. However, given the quantum of provisions made, especially in 2HFY20, the overall PCR now stands at 70% which is a respectable level. Loan book stood at Rs1,714bn, down 29% YoY/7.9% QoQ. The wholesale book...
For 3QFY20, Yes Bank has reported a loss of Rs185.6bn on account of 44x YoY/17.5x QoQ jump in provisioning, which came in due to rapid deterioration in asset quality. The stress build-up and recognition has continued well in 3QFY20 with GNPAs increasing 1,148bps QoQ to 18.9% while the increase in NNPAs to 6% (+162bps) was largely contained on the back of increasing provision coverage to 72.7%, up nearly 3,000bps QoQ. The height of NPA formation seems unprecedented but the delayed disclosure is not surprising, especially since the situation became largely known when RBI superseded the bank's board and announced the reconstruction scheme. At the operating level too, the bank has reported a loss of Rs0.1bn, driven by falling net interest income...
Yes Bank reported its Q3FY20 numbers wherein the performance was impacted by a surge in slippages leading to a substantial erosion in networth (CET 1 at 0.6% as on December 2019). RBI has penned a restructuring plan entailing capital infusion of ~| 10000 crore by banking peers led by SBI. However, challenges in terms of liquidity (with moratorium being removed from March 18, 2020), asset quality, liability management and further capital for growth are expected to keep earnings under pressure. Huge dilutions are expected to keep growth in ABV muted....
As per the RBI's draft of the proposed restructuring plan for Yes Bank (link), SBI will subscribe to 2,450mn shares of Yes Bank initially at a value of Rs10/share, effectively taking a 49% stake in the reconstructed bank. Increasing the authorized share capital of the bank to Rs50bn and altering number of shares to 24bn indicates RBI's intent to set grounds to accommodate further rounds of capital infusion. Also, since Yes Bank's capital requirement is far more, we believe the initial capital infusion of Rs24.5bn by SBI is likely to be followed by a number of capital raises which could include other private investors, including global players. As per the SBI chief, there is considerable interest in the Indian financial sector. For SBI, the maximum investment over a period of 3 years could entail an amount of Rs100-120bn assuming they retain...
Stressed asset quality remains cause for concern Absolute GNPA and NNPA were at | 17134 crore and | 9757 crore, respectively. Its GNPA already surged 238 bps QoQ in Q2 to 7.39% while NNPA ratio had surged 144 bps QoQ to 4.35%. The GNPA and NNPA ratios can go above 10-11% soon as the risk in BBB/BB and below books is estimated to be closer to | 30000-40000 crore. If...
The RBI, in consultation with the Central Govt, has superseded the board of Yes Bank for a period of 30 days owing to serious deterioration in the financial position of the bank. The motive behind such move has been to restore depositors' confidence in the bank. Since much before, we have been of the view that it is highly unlikely that RBI/the govt will allow a bank to fail since it would negatively impact the perception of bank deposits' safety which the RBI cannot afford. With respect to Yes Bank, the contours of the restructuring/amalgamation scheme remain largely unknown at the current...
Yes Bank management was unable to raise capital to address its weak financial position. In anticipation of possible trigger of bond covenant and deposit withdrawals. RBI has taken control of the board for the next 30 days from 5th March to 3rd April with restrictions on operations. Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has...
Loans & Advances declined 6.3% YoY, due to 15.0% decline in the Corporate Banking division representing 61.9% of total loans. Net interest margin (NIM) declined ~60bps YoY and ~10bps sequentially, due to higher cost of funds, fresh slippages and decline in loans. GNPA/NNPA ratio increased sharply to 7.4%/4.4% in Q2FY20 vs. 1.6%/0.8% in Q2FY19, as a result of increasing bad loans. Given the weakening asset quality, declining margins and loan volumes,...
Based on our analysis, total sensitive sector exposure is ~20% of portfolio while BB & below portfolio is at 14% and this makes us believe that stress is largely recognized. Higher the asset quality deterioration, higher would be the capital requirements of the bank going forward. In our view, even if the bank is able to raise capital, future profitability would be dependent on...
Yes Bank continued to see high loan slippages of Rs59.5bn into NPA with 60% being from BB & below book and 40% from outside the identifie d stressed BB & below book which was key negative. Also, the BB & below book saw jump from 9% of exposure to 10% in Q2FY20 and notwithstanding the same, the BBB & below also saw jump of 21% QoQ to 21% of exposure (320bps QoQ jump) due to downgrades from higher buckets. Higher additions to lower buckets & lumpy exposures remains a big risk to asset quality added by sluggish resolutions. By consolidating b/s bank has been able to conserve...
Advances growth slumped to 10.1% YoY to | 236300 crore, led by lower growth capital & restructuring in corporate book. Subdued loan growth was courtesy de-growth of 13% YoY in MSME & slower growth in corporate book (64% of advances). Retail segment growth while healthy, moderated to 44% YoY, with resultant share up 1.6% QoQ to 18.3%. However, the management expects capital raising to be completed by Q2FY20, which is needed for growth and not balance sheet repair. Deposit growth was limited to 5% YoY at | 225902 crore, led by YoY, QoQ CASA de-growth....
Loans & Advances rose 10.1% YoY, led by strong growth of 43.3% from the Retail Banking division representing 18.3% of total advances. GNPA/NNPA ratio stood at 5.0%/2.9% in Q1FY20 vs. 1.3%/0.6% in Q1FY19, as a result of increasing bad loans....
moderation in business growth and elevated provisions impacted the earnings performance of the bank in Q1FY2020. Net Interest Margin (NIM) of the bank has declined to 2.8% in Q1FY2020 compared with 3.3% in the corresponding quarter last year. The loan growth of...
Steep rise in slippages alongwith bigger quantum of NPAs emanating from outside watchlist marks uncertainty over the future trajectory of asset quality. Capital infusion, the need of the hour, looks difficult to come by which mgmt. claims could happen in Q2FY20. Lower amount of...
Yes Bank (YBL) reported 1QFY20 results with the key pointers being (1) All net slippages from corporate book amounting to Rs 45.54bn emerged from the sub-investment grade book but ~Rs 21bn emerged from outside the pre-designated watchlist (2) Core margin stood at ~3.2-3.3% but interest reversals and non-interest earning bad loans dragged reported NIM down to 2.8%, down 30 bps QoQ (3) Fee income fell -51% YoY to Rs 6.08bn on the back of very weak corporate banking fees (4) Advances growth was 10.1% driven by core retail growth of 43.3% YoY. (See comprehensive conference call takeaways on page 2 for significant incremental colour.). Per se, on the key P&L; items, YBL posted NII growth of 3% YoY at Rs22,809mn, PPOP decline of 20% YoY at Rs19,591mn and PAT decline of 91% YoY at Rs1,138mn. We have revised our estimates for FY20/FY21 and retained Buy...
