Yes Bank |
Upgrade to ACCUMULATE |
ACCUMULATE
CMP: Rs285 Target Price: Rs340
n Yes Bank’s Q2FY12 NII at Rs3.8bn was largely inline. PAT at Rs2.35bn was above our and street estimates and was aided by higher non-interest income
n Balance sheet growth remains moderate at 10% qoq; helps maintain NIM at 2.9%. Retail + CASA deposits grew 53% yoy (6% qoq) and comprised 29% of total deposits
n Restructured portfolio doubles to Rs1.7bn driven by 3 MFI accounts, albeit bank has made adequate provisions for the same
n Drive comfort in smooth transition of the business mix. Valuations of 2.2x/1.5x FY12E / FY13E ABV provide room for decent upside. Upgrade to ACCUMULATE. Maintain TP of 340
Regards,
Kashyap Jhaveri |
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : kashyap...@emkayglobal.com |
Board No. : +91-22-6612 1212 | Extn. : 249 | DID : +91-22-6612 1249 | Mob : +91-98202 41712 | Fax : +91-22-6624 2410 | |
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