YES Bank Ltd. share price target

Yes bank witnessed a steep correction when RBI denied the three year extension of Mr.Rana Kapoor as CEO of the bank and asked him to step down due to regulatory and governance issue. The exit of Kapoor, who co-founded the bank in 2004 could impact the loan growth and may potentially affect the capital raising plans. Board has formed a five-member panel including two members from outside the bank to find a successor....

ICICI Securities Ltd | Retail Equity Research Putting an end to the ambiguity around extension of Rana Kapoor, MD & CEO of the bank, RBI has curtailed his tenor that will now expire on January 31, 2019. The board is scheduled to meet on September 25, 2018 to decide the future course of action. The term of Rana Kapoor, was ending on August 31, 2018. The board and shareholders had approved Kapoor's extension for a period of three years while RBI's approval was awaited. RBI had been quite vigilant on these divergences in the asset quality review...

RBI's stance to cut short tenure of Mr. Rana Kapoor as MD&CEO; to Jan 31 , 2019 as against the board's request to grant a 3-year term has made us reevaluate our investment thesis on Yes Bank. We believe Mr. Kapoor's presence at the helm of Yes Bank is an all-encompassing...

Odds in favor of a Yes: We maintain our BUY on the stock even as RBI is evaluating the Bank's application for the re-appointment of Mr Rana Kapoor as the MD past the end of his tenure on 31st August, 2018.

ICICI Securities Ltd | Retail Equity Research The term of Yes Bank MD and CEO, Rana Kapoor, was ending on August 31, 2018. The board was awaiting the approval of his proposed three-year extension. However, on the penultimate day, the Reserve Bank of India (RBI) provided an extension to him to continue till further notice from their side without clarifying anything on any period of extension. Yes Bank had reported a divergence in asset quality in the last two years of FY16 (| 4176 crore) and FY17 (| 6355 crore). RBI had been quite vigilant on...

CASA ratio at 35%, on the back of strong 36% CASA growth YoY. GNPA/NNPA ratios increased to 1.31%/0.59% against 0.97%/0.39 % on YoY. Earnings are expected to sustain a healthy growth of 29% CAGR on the back of robust loan growth at 28% CAGR. With a stable earnings outlook, we value Yes bank at 2.5x P/BV and...

Yes bank has continued to report strong 31%, on yoy basis, increase in the net profit to Rs 1260.36 crore for the quarter ended June 2018 (Q1FY2019). The bank has posted healthy 23% growth in the net interest income, while non-interest income surged 50% in Q1FY2018. The operating expenses of the bank were under control, helping to sharply improve cost-to-income ratio to 37.3% in Q1FY2019. The bank has continued to maintained strong asset quality. The loan growth of the bank was way ahead of the industry level at 53% at end June 2018. However, the bank has exhibited decline in Net Interest Margin (NIM) to 3.3% in Q1FY2019 compared with 3.7% in the corresponding quarter last year, driven by sharp increase in cost of...

consumer banking (up by 104.5% yoy and 21% qoq). While medium corporate & micro & small corporates reported flat to negative growth on sequential basis. Going forward, management expects the credit to grow by 30% in FY19 vs. our expectation of 33%....

Strong & Healthy but lagged expectation a bit: The bank reported a strong and healthy performance but lagged expectation a bit. Plus thetreasury loss too came in higher than expected. Loan growth was robust and consumer banking piece gained in the loan mix share.

ICICI Securities Ltd | Retail Equity Research NII increase of 22.7% YoY to | 2219 crore was a bit below estimates. This was mainly due to 10 bps QoQ decline in margins to 3.3%. The margin decline was on account of a QoQ rise in CoF The credit book continues to be largely driven by the corporate portfolio (led by low yield international business unit that increased 214% YoY from 8.8%), rose 52.3% YoY and currently forms 67.6% of the total book. Retail loans more than doubled in the last one year...