Accumulate Yes Bank - Emkay

Yes Bank
Reco: ACCUMULATE
CMP: Rs 319
Target Price: Rs 370

Results inline

- Yes Bank Q3FY12 results inline with NII at Rs4.2bn and profit at Rs2.5bn. Healthy non-int inc and lower provisions compensated for opex. NIM at 2.8% was down 10bps qoq.

- Increasing footprint + deregulation of int rates on savings deposits was a boon – CASA + retail deposits formed 31% of deposits. Share of branch banking increased to 15% of loans

- Growth in credit substitutes compensated for loan growth moderation. Asset quality remains comfortable with problem loans (GNPA + restructured) at mere 0.7% of total loans

- Drive comfort in bank's smooth transition of the business mix. Superior return ratios coupled with stable asset quality provides comfort. Maintain ACCUMULATE.

Source : Equity Bulls

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