BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Yes Bank Ltd. reported a net profit of Rs 3.7 billion versus our expectation of a loss, driven by 84% YoY growth in net interest income and 95% YoY drop in provisioning.
Net loans increased by 8.5% YoY, lower than our expectation earlier during the year. Operational performance was stable with emphasis on retail loans, which now account for 60% of total loans.
Deposit traction remains healthy even as the bank has been able to reduce its cost of deposits.
We take note of the continued reduction in stress levels over the last few quarters, driven by lower slippages and higher recoveries/upgrades.
However, even at the current stress levels and return profile, we find it hard to make a positive case for the bank.
Yes Bank has guided for-
3% exit quarter net interest margin in FY23,
2.4% opex/assets,
2% slippages,
more than 0.75% return on asset in FY23.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR