YES Bank Ltd. share price target

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...

Outlook: YESBK reported strong results on most parameters buoyed by sharp advances growth and stable asset quality. We find encouraging...

Q: What is the impact the recent RBI guidelines on stressed assets impacting Yes Bank and the credit costs outlook thereof? For Yes Bank, the impact of the recent RBI guidelines on our Restructured Book as well as on exposures to entities with systemic exposures above INR1Bn is minimal and it doesn't alter the Bank's outlook on its credit / asset quality parameters. The Bank has been...

The board of Fortis Healthcare announced the sale of its hospital assets to the Manipal-TPG combined along with the sale of 20% stake in its diagnostics arm in a complexly structured deal, which prima facie values the Fortis Hospital stake at a significant discount. Post the announcement, the stock price of the FHL witnessed a correction. A section of minority...

material shocks coming on the asset quality side. We aren't much worried about the RBI RBS divergence amount as it is the only bank that recovered & resolved 90% of divergence amount within 6 months reflecting its holding superior quality of collaterals. We also draw comfort from...

Yes Bank's (YES) Q3FY18 PAT grew by 22% YoY at Rs 10.8 bn, which was in line with our estimate. Asset quality improved, as slippages were lower at Rs 4.9 bn which drove 10 bps QoQ decline in GNPA ratio to 1.7%.

Yes Bank Ltd.'s profit matched market estimates for the December ended quarter while asset quality improved marginally. Yes bank has maintained healthy earnings performance, while posting 22%, on yoy basis, increase in the net profit to Rs 1076.87 crore for the quarter ended December 2017 (Q3FY2018). Except decline in the Net Interest Margin (NIM), the bank has exhibited all round healthy performance across various performance indicators in Q3FY2018. The bank has posted strong 27% growth in net interest income, while non-interest income surged 40% in...

Yes Bank Ltd Q3FY18 results comment NII increased to Rs. 1888.8 Cr in Q3FY18 compared to Rs. 1885.09 Cr in Q2FY18.

The key highlight was the robust growth of 46.5% YoY in advances to | 171515 crore, led by 44.8% YoY increase in the corporate book NII increase at 25.3% YoY to | 1889 crore was lower-than-expected. Margins dipped 20 bps QoQ to 3.5%. This was on account of raising of high cost (~8.5% rate) perpetual & tier 2 bonds and also due to...