YES Bank Ltd. share price target

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...

Yes Bank continued to deliver a healthy performance on all major operational parameters in 1QFY19. Its net profit grew by 30.5% YoY and 37.9% QoQ to Rs12.6bn led by 46.9% YoY and 34.7% QoQ growth in other income on the back of strong growth in fee-based income from Corporate and Transaction banking. However, NII grew by 22.7% YoY and 35.3% QoQ to Rs22.2bn marginally below our estimates owing to 30bps QoQ decline in NIMs to 3.3% partially led by sharp growth in loan book and relatively higher reversal of income on fresh slippages. Loan book grew by 53.4% YoY and 5.5% QoQ owing to strong growth in Corporate, IBU, Retail and MSME segments. CASA ratio also declined marginally to 35.1% in Jun'18 vs. 36.5% in Mar'18 and...

Yes Bank (YES), incorporated in 2004, is a private Indian bank. It is promoted by Mr. Rana Kapoor with financial support of Rabobank and Global investor - AIF Capital and Chrys Capital. Despite competition from well established private banks, it has been able to grow its balance sheet at steady pace. The bank's advances have grown at heal..

Bank has achieved various key milestones in FY18 and entered the large bank growth phase while crossing assets level of ` 3 lakh crore, advances level of ` 2 lakh crore as well as deposits base of ` 2 lakh crore and emerging as fourth largest privet sector bank . The International Banking Unit at GIFT city has continued to expand business, with total assets crossing US$ 2.5 billion within 3 years of operations. Well positioned to deliver on growth & earnings, Steady NIMs - Enhance profitability Advances grew by 53.9% y-o-y to ` 2,03,533.9 Crores in FY 2018 on the back of robust growth across Corporate (67.9% of advances, up by 54.1% y-o-y), MSME and Retail businesses segments . Core retail banking advances doubled in FY2018, while gained share to 12.2% of total Advances from 9.4%. MSME loan book also surged 34.4% end March 2018 over March 2017. Going forward,...

Slippages have eased to 0.8% (Rs3.8bn) as against 1.2% last quarter. Also supported by higher recoveries/up-gradation, GNPA eased by 44bps sequentially to 1.3%. Credit cost for the quarter dropped further to 13bps. Management has guided robust credit cost guidance for FY19 to be within 50-70bps. Healthy loans/deposits growth of 54%/41% respectively with higher growth (98%) in retail segment. Management has guided credit growth of 30% for FY19. Healthy CASA of 36.5% and management targeting it at 40% for FY19. Driven by strong credit growth and contained credit cost, NII has grown by 31% (6%...

Yes Bank Ltd.'s Q4 beats estimates, asset quality improved. Yes bank has continued to report strong 29%, on yoy basis, surge in the net profit to Rs 1179.44 crore for the quarter ended March 2018 (Q4FY2018). The strong growth in net interest income and core fee income, along with an improvement in cost-to-income ratio supported the earnings performance of the bank in Q4FY2018. Net Interest Margin (NIM) stood at 3.4% in Q4FY2018, while bank has reduced cost-to-income ratio to 40.3% in Q4FY2018. On business front, the bank has sharply accelerated loan growth to robust level of 54% at end March 2018. Bank has maintained strong Current Account-Saving Account (CASA) deposits...

The bank reported fairly formidable performance led by phenomenal loan growth and strong asset quality. Margins were down sequentially but the same is consequent to high capital consumption and de-risking of the book. Sequential growth in Savings accounts was a bit modest nevertheless we assess it to improve. With the bank's CET ratio now at 9.7% we estimate a book accretive capital raise towards FY19E end.

The credit book was largely driven by corporate portfolio, which rose 54.1% YoY. Core retail advances doubled YoY and is now at 12.2% of loans, coupled with healthy growth of 34.4% in MSME Operating profit grew 26.3% YoY to | 2135 crore while lower provisions QoQ enabled PAT growth of 29% YoY to | 1179 crore Asset quality improved in Q4FY18. Absolute GNPA fell by | 348 crore QoQ to | 2627 crore. The GNPA ratio improved to 1.28% vs. 1.72% QoQ. Slippages were lower at | 380 crore vs. | 495 crore seen in...

YES reported robust PPoP growth of 6.7%/26.3% QoQ/YoY to INR19.57b (in-line; core PPoP growth at 34% YoY, backed by strong core fee income growth of 21% YoY), led by total income growth of 23.4% YoY and controlled opex(+19.4% YoY to INR14.4b). Controlled provisions of INR4.0b (-5% QoQ) led to a 29% YoY increase in PAT to INR11.8b (6% beat). Advances growth accelerated to 54% YoY at INR2.04t, while deposits grew 41% YoY to INR2.01t. CASA deposits gr ew 41% YoY, but the CASA ratio declined sequentially to 36.5% (38% in 3Q) as total deposits grew 16.9% QoQ. NIM shrunk 10bp QoQ to 3.4%, led by (i) higher proportion of borrowings as the bank raised INR30b/INR39b of Tier-2 bonds/Medium Term Notes (MTNs),(ii) a sequential drop in CASA share and (iii) increased lending to better-rated corporates. Cost to core income ratio at 42.4% was 30bp below the 3QFY18 levels, even as the bank added 50 branches during the quarter.

Yes Bank continued to deliver a healthy performance across operational parameters in 4QFY18 and FY18. Its net profit grew by 29% YoY and 9.5% QoQ to Rs11.8bn led by higher NII of Rs21.5bn (+31.4% YoY and +14.1% QoQ). Loan book grew by 53.9% YoY and 18.7% QoQ owing to strong growth in Corporate, Retail and MSME segments. Though NIMs moderated marginally to 3.4% in 4QFY18 (vs. 3.5% in 3QFY18), it improved to 3.5% in FY18 (vs. 3.4% in FY17). Savings bank deposit grew by 35.3% despite the base impact of demonetisation in 4QFY17 leading to CASA ratio of 36.5% as of Mar'18-end. The Bank demonstrated all-round improvement on asset quality front led by 23.2% QoQ decline in fresh slippages to Rs3.8bn, 44bps QoQ decline in gross NPA ratio...