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Published on 25/01/2018 12:53:25 PM | Source: Reliance Securities Ltd

Buy Yes Bank Ltd For Target Rs.410.00 - Reliance Sec

Posted in Broking Firm Views - Short Term Report| #Yes Bank Ltd #Banking Sector #Trading Report #Reliance Securities Ltd

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* YES Bank closed 1.4% higher as compared to flat close in benchmark NIFTY.

* Yes Bank is making sustained progress towards building a strong retail franchise, which we believe would add depth to its balance sheet and boost earnings.

* Yes Bank has delivered higher-than-estimated operating performance in 3QFY18 driven by: (a) a stellar growth in loan book; (b) sharp sequential growth in core fee-based income; and (c) decline in provisioning expenses owing to higher upgrades and recovery coupled with lower fresh slippages.

* The Bank demonstrated all-round improvement on asset quality front led by 75.1% QoQ decline in fresh slippages to Rs5bn, 8bps QoQ decline in gross NPA ratio to 1.72% ; 7 bps QoQ decline in net NPA to 0.93%, while PCR improved by 310bps QoQ to 46.4%

* Further, a detailed study of loan book indicates that the Bank has been able to manage the issues of asset quality front effectively.

* We reiterate our BUY recommendation on the stock with a Target Price of Rs410 based on 3.3x FY19E Adjusted book value.

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