One percent RoA target is still modest in comparison to competition, and, seen in this light, the valuation of Yes Bank appears expensive
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PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Yes Bank (CMP: Rs 13.75, Market Cap: Rs 34,450 crore) has reported a decent quarter, not only posting a profit but also tracking most of its key parameters well. While core performance was lacklustre, the respectable headline number came from lower provision, thanks to the sequentially lower slippage to NPA, and higher recovery and upgrades. While the asset quality picture is incrementally positive, the baggage is large and could warrant higher provision even if it gets transferred to a…
