YES Bank's share prices during October 2019. The cost-assets ratio ticked up as the bank goes on hiring mode. Their airline exposure has already been recognised as an NPL. Yes Bank share price has skyrocketed over 4.5 per cent today and hit Rs 14.55 per stock levels. Asset quality summary The bank made a not entirely unexpected contingency provision in Q4. Click here to join our channel and stay updated with the latest Biz news and updates. Not really. Zee Business research team is of the opinion that yesterday's outcome at the AGM of the private lender is the major reason for this rise in Yes Bank shares. Fee growth collapsed—reporting a second successive quarter of a y-o-y decline (63% down y-o-y) led by corporate banking fees and financial market fees. ?????? Revisions to earnings estimatesGiven multiple pressure points across revenues, costs and asset quality, we take a steep cut to our earlier estimates by 52% and 48% in FY20e and FY21e, respectively, pulling down RoA to 75bps and 85bps, accordingly. As Yes Bank faltered on NPAs, its share price went down and public confidence in it fell. Analysts say Yes Bank FPO is aptly priced at the price band of Rs 12-13 as the scope of recovery in the bank's asset quality and earnings in the near term looks difficult because of the Covid outbreak. Stock Market. Shraddha Kapoor’s latest workout video is a must-watch, Army nabs Pakistani intruder at Indo-Pak border in Punjab's Ferozepur, Trailer For Chadwick Boseman's Last Movie 'Ma Rainey's Black Bottom' Is Making People Emotional, Ofori: Orlando Pirates confirm signing of former Maritzburg United goalkeeper, Mamaearth seeks Rs 2,000 crore valuation, Sequoia may invest more, What You Actually Need to Know About Aerobic Exercises. Gemopai announces festive offers for its e-scooters, Who do you think will win a fight between leopard and python? From its previous price target of ₹50 a share, Jefferies analysts have revised the price target downwards to ₹35, valuing the stock at 0.6 times adjusted book (as of December 2020) and 5.7 times earnings (12 months to December 2021). This reflected not only in depositors shying away from opening fresh accounts but also in massive withdrawals by existing depositors, who pulled out over Rs 18,000 crore between April and September last year. YES Bank share price recovered in trade today on value buying after the stock tanked nearly 30% in the last trading session. ?15000 ???? ????? More Than 70% of Shoppers Have This Food Fear About Coronavirus. This quarter saw fairly high slippages of 5.8% vs under 3% for 9MFY19.
Apart from this, the private lender completely defied the news of Yes Bank and SBI merger and said that there is no such official information to the private lender. ?? In YES Bank’s defence, Anurag Adlakha had said: “We will not raise capital at any price.” On August 10, YES Bank had announced the appointment of Adlakha as chief financial officer (CFO) and designated him as group CFO. Oct 14, 11:48. It is also said that corporate titans like Bharti Airtel’s Sunil Mittal and Hero MotoCorp’s Sunil Kant Munjal have shown interest in investing in India’s 13th largest bank. Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Right now, Yes Bank IS completely focused on increasing its income by boosting its loan book by 10 per cent and 20 per cent in FY21 and FY 22 respectively. However, CASA mix remained healthy at 33% leading to NIMs that would have remained flattish but for an interest income reversal of Rs 1 bn on account of slippages. The current rise in share prices does help YES Bank to get fresh capital at a relatively better valuation. Management’s target is to bring down corporate-retail mix from 66-34 to 50-50 over the next 5-7 years, thus, reducing the risk tendency of the book. Balance sheets being closely watched; SBI’s price to book ratio of 0.3 times convinces the new chairman that the market values the bank well. Oct 12, 18:15. At this juncture, raising capital is most crucial for YES Bank. How to transform your backyard space into a perfect wedding venue? Is RBL Bank going YES Bank’s way? The recovery was majorly helped by speculations of YES Bank wooing global technology giant Microsoft as an investor. Investors who intend to hold the shares for over three years should subscribe to the issue. Jefferies India analysts Nilanjan Karfa and Harshit Toshniwal in an October 14 note on Indian banks point out that “YES Bank’s financials will be critical from a sector perspective”. This results in our revised TP of Rs 197 implying a target P/ABV multiple of 1.3x. ?#YesBank #RBI @poojat_0211 pic.twitter.com/fLa8E71pvG. Adarsh Parasrampuria, banking analyst at Nomura, for instance, had raised concerns on the then stock price of YES Bank, and its impact on the quantum of the bank’s fundraising plans. Long road to redemption for Yes Bank check share price target. “While the results are going to be out in two days, the run-up in share prices seems to be lacking any investing logic,” said an analyst with a foreign brokerage on condition of anonymity. Follow us on Facebook, Twitter & YouTube to never miss an update from Fortune India. When shareholders asked about the news spread of Yes Bank SBI merger, the private lender completely denied and said that Yes Bank is yet to get any official information on merger with the SBI. Yes Bank's CET1 ratio also went up from 6.60 per cent to 13.40 per cent.". Earlier, in an October 9 note from Mumbai-based Emkay Global Financial Services, a team of analysts, led by banking analyst Anand Dama, reiterated their “sell” rating on YES Bank with a revised target price of ₹38 a share, “amid rising corporate stress leading to weak return ratios and sub-par capital position with incremental capital raise at lower valuations”. Yes Bank Crisis: The Bottom Line. “Clarity on capital raise will be crucial,” the duo notes as the bank builds a slippage ratio of 8.0% for the second quarter of FY20 against 11.6% for the first quarter of the current financial year. Your email address will not be published. Valuations and target price With management targeting a 1% exit RoA in FY21 and 1.5% in the years following that, we value the stock on a 13% RoE which would be the RoE under a 1% RoA scenario with max possible leverage considering their 83% RWA/assets ratio. We factor in a $1 bn equity raising in FY20e at current market price resulting in a 13% dilution and an ABV of Rs 154 per share in FY21e. Yes Bank AT1 Bond case: Bombay High Court’s interim orders to continue till October 31. Further, on October 22, the bank in a release to stock exchanges informed that in a bid to recover over ₹479 crore from real estate developer Sumer Group it had taken possession of two plots of land in Mumbai. Thus, pre-provisioning profits were down 38% y-o-y. ???? YES Bank’s managing director and CEO Ravneet Gill and his team took some hard questions in the 8 a.m. analysts’ call, which lasted for over 48 minutes, after the bank’s stock hit a 52-week low on October 1. To buy a copy, visit Amazon. It reported that Yes Bank has deposited entire Rs 50,000 crore of the Special Liquidity Facility (SLF) of the Reserve Bank of India (RBI) after depositing Rs 15,000 crore to the RBI on 8th August. Our country’s banking state is not very well-off, to say the least.
??? This book of stressed, but standard exposures of Rs 100 bn comprises 6-7 accounts. Matthew McConaughey's Dad Died of a Heart Attack While Having Sex—How Does This Happen? Deposit growth, too, decelerated keeping pace with loan growth.
However, the quantum was larger than expected at Rs 21 bn on a stressed asset base of Rs 100 bn in an effort to provide proactively for FY20e. While these developments can be counted as a routine part of a bank’s business, there was hardly anything peculiar that pushed the YES Bank stock up in a short duration. ©2020 Business Media Private Limited. During the call, Gill had emphasised that since the beginning of the first quarter of FY20, the bank was conserving capital and also trying to stabilise asset quality. Required field are marked*. The YES Bank stock on Tuesday surged to its month’s high of ₹59.9, recovering more than 106% from its 52-week low of ₹29.05 in just 18 trading sessions. In the course of the month, the bank on two occasions highlighted that it was taking on defaulters with an iron fist. Most Read. The two listed stocks of Shapoorji Pallonji Group jumped on the bourses after the Mistry family said it was considering severing ties with the Tata group.