YES Bank extends gains post Q4 results

Shares of YES Bank were trading higher by 4% at Rs 825, extending its previous day’s 1.5% gain on the National Stock Exchange (NSE), after reporting a 28% year-on-year (y-o-y) rise in net profit at Rs 551 crore for the quarter ended March 2015 (Q4), on back of higher interest income and a healthy growth in advances to retail and small and medium enterprises (SME).

Net interest income rose 36% to Rs 977 crore despite a flat net interest margin sequentially at 3.2%, marginally up from 3% from the year-ago period. The non-interest income grew 32% to Rs 590 crore on yoy basis.

Veekesh Gandhi and Rajeev Varma, analysts at Bank of America Merrill Lynch reiterate ‘Buy’ rating and have raised target price to Rs 1,100.

“We believe the bank is among the better positioned to manage the changing environment over the next three years. The bank currently trades at 2.5x FY16 adjusted book value or -0.2SD below its historical cycle average,” said analysts in a report dated April 23, 2015.

"Yes Bank is among the bigger beneficiaries of any uptick in both the macro and the investment cycle, given its relatively higher wholesale share on both sides of the balance sheet," the report adds.

The stock opened at Rs 805 and hit a high of Rs 829 on the NSE. Till 1004 hours, a combined 3.4 million shares changed hands on the counter on the NSE and BSE.

Yes Bank