YES Bank Ltd. share price target

Yes Bank is India's youngest and fifth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories. The Bank is promoted by professional bankers and has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. As on December 31, 2016, the BANK has a...

YES Bank's customer assets (advances + credit substitutes) grew strongly (19.3%YoY) in 3QFY16 to INR 936bn led by healthy growth in advances (26.7%YoY, 5.5%QoQ), while credit substitutes contracted (22.4%YoY). Consequently, the share of credit substitutes in customer assets declined (528bps YoY, 28bps QoQ) to 9.8%. Growth in advances was supported by strong growth in Corporate & Institutional Banking (23.9%YoY, 3.9%QoQ), while retail banking (including MSME/Business Banking) grew (32.8%YoY, 8.8%QoQ). Consequently, their share in overall advances was noted at 67.2% and 32.8% respectively. Sector-wise Iron & Steel exposure stands at 3.2%, EPC at 6.1% &...

Yes Bank reported a healthy performance during 3QFY2016 with PAT growth of 25.1% yoy to Rs675.7cr, which is above our expectation. The NII for the bank grew strong by 27.3% yoy on account of strong growth in advances and Retail & CASA deposits. Advances and deposits growth remains strong: During the quarter, advances grew at a healthy pace of 26.7% yoy while deposits grew 23.1% yoy, suggesting a healthy balance sheet growth. Savings deposits continued to witness robust traction, growing by 64.1% yoy, on account of the banks growing retail franchise while current deposits grew by 18.4% yoy. Overall, CASA deposits grew by 45.1% yoy; as a result the CASA ratio improved 400bp yoy and 120bp qoq to 26.6%. NIM improved qoq backed by lower cost of funds: The NIM for the bank inched up 10bp qoq to 3.4%. During the quarter, the bank reduced the rate offered on its savings deposits from 7% to 6% and this helped lower the cost of fund, thereby leading to improvement in margins. The non-interest income grew by 39% yoy, while operating expenses grew by 29.2% yoy, leading to a 33.3% yoy growth in operating profit. Asset quality continues to be healthy: Despite...

Not out of the woods yet; Asset quality remains a key monitorable YES Bank reported profit marginally higher than our estimate primarily due to strong growth in corporate banking fees along with healthy growth in core fee income and NII. Other Income grew by 39% yoy and 20.7% qoq to Rs7.5bn led by 63.3% yoy and 73.1% qoq increase in corporate banking fees. Slippage came in high at Rs2.8bn (annualized ratio of 1.4%) v/s Rs1.5bn (0.7%) in 2QFY16 and Rs0.7bn (0.4%) in 3QFY15. Non performing investments (NPI) increased by 36.6% qoq to Rs661mn, which now stands at ~8% of the debenture and bond...

Yes Bank's Q2FY16 results were above estimates as the earnings grew by 26.4% YoY (10.7% QoQ) to Rs 6.1 bn mainly led by strong growth in NII (29.4% YoY and 4.6% QoQ) to Rs 11.1 bn. Advances growth was in-line with expectation (29% YoY and flat QoQ) along with NIMs which remained stable at 3.3%.

YES Bank's customer assets (advances + credit substitutes) grew strongly (19.7%YoY) in 2QFY16 to INR 890bn led by healthy growth in advances (29%YoY, 0.4%QoQ), while credit substitutes contracted (26.9%YoY, 13.4%QoQ). Consequently, the share of credit substitutes...

The bank has successfully completed its second planning cycle Ver2.0 and has launched next planning cycle to become one of the leading banks in the country over the next five years. To support growth, the bank has taken an enabling provision to raise another US$1bn through ADR/GDR/QIP at the appropriate time in coming 12-24 months. The bank's ALM suggests strong growth in operating income in coming years. We expect earnings CAGR of 25.5% over FY15-17E, led by better NII and fee income coupled with moderate provision expenses. We maintain our BUY recommendation...

Yes Bank's Q1FY16 results were above estimates as the earnings grew by 27.7% YoY (flat QoQ) to Rs 5.5 bn mainly led strong growth in NII (42.2% YoY and 8.5% QoQ) to Rs 10.6 bn. Advances growth was higher than expected (35.1% YoY and 5.4% QoQ) along with NIMs which grew to 3.3%. Asset quality slipped marginally as GNPA increased to 0.46% vs 0.41% in Q4FY15 whereas NNPA remained stable 0.13%. PCR also remained stable at 71% whereas restructured book increased marginally to 0.7%. We expect the core operating performance improvement to continue. We maintain our positive view on the stock with a Buy rating and a price target of Rs 980 (2.5x FY17E ABV).

YES Bank's customer assets (advances + credit substitutes) grew strongly (26.3%YoY, 3.3%QoQ) in 1QFY16 to INR 900bn led by healthy growth in advances (35.1%YoY, 5.4%QoQ), while credit substitutes contracted (15.6%YoY, 10.4%QoQ). Consequently, the...