Yes Bank, one of the leading private sector banks, today reported a rise of 21.41% in net profit to Rs 4.15 billion for the quarter ended Dec. 31, 2013 as compared to Rs 3.42 billion in the same period last year. Quarterly income totaled at Rs 29.02 billion, an increase of 18.6% over Rs 24.47 billion in the same period a year ago.
Commenting on the results, Rajat Rajgarhia, head of research, Motilal Oswal Sec, said, ''Yes Bank's NII growth of 16% is slightly above expectations. Net Profit grew by 21%, which was better than expectations led by higher other income, we remain positive on the stock. Yes Bank managed the last two years of this downturn very well in terms of moderate growth and managing their asset quality very well. If they are able to continue with this process which we think they will for another couple of quarters, so whenever the growth resumes back in the system their growth rates will again start outperforming the industry very well. The good thing for investors today in favour of Yes Bank is that the valuations today are nowhere factoring in the growth that can return for them, bank has managed its asset quality and growth well and recommends buying the stock at current levels.''
Vaibhav Agrawal, VP, research, banking, Angel Broking, said, ''Yes Bank reported a healthy operating performance during the quarter, which was ahead of our expectations. Over the last few quarters, the balance sheet growth for the bank has moderated. Even during current quarter, aided by moderate loan book growth of 15% yoy, NII for the bank grew 14% yoy. However, with yield curve now much moderate then earlier and increasing expectations of lower interest rates by early part of next fiscal, the stock is likely to re-rate as valuations would factor in the growth potential. At CMP, the stock trades at 1.4x FY2015E ABV. We recommend Buy rating for the stock with a target price of Rs. 419.''
Shares of the bank gained Rs 6.75, or 1.95%, to settle at Rs 353.05. The total volume of shares traded was 1,803,868 at the BSE (Wednesday).
Commenting on the results, Rajat Rajgarhia, head of research, Motilal Oswal Sec, said, ''Yes Bank's NII growth of 16% is slightly above expectations. Net Profit grew by 21%, which was better than expectations led by higher other income, we remain positive on the stock. Yes Bank managed the last two years of this downturn very well in terms of moderate growth and managing their asset quality very well. If they are able to continue with this process which we think they will for another couple of quarters, so whenever the growth resumes back in the system their growth rates will again start outperforming the industry very well. The good thing for investors today in favour of Yes Bank is that the valuations today are nowhere factoring in the growth that can return for them, bank has managed its asset quality and growth well and recommends buying the stock at current levels.''
Vaibhav Agrawal, VP, research, banking, Angel Broking, said, ''Yes Bank reported a healthy operating performance during the quarter, which was ahead of our expectations. Over the last few quarters, the balance sheet growth for the bank has moderated. Even during current quarter, aided by moderate loan book growth of 15% yoy, NII for the bank grew 14% yoy. However, with yield curve now much moderate then earlier and increasing expectations of lower interest rates by early part of next fiscal, the stock is likely to re-rate as valuations would factor in the growth potential. At CMP, the stock trades at 1.4x FY2015E ABV. We recommend Buy rating for the stock with a target price of Rs. 419.''
Shares of the bank gained Rs 6.75, or 1.95%, to settle at Rs 353.05. The total volume of shares traded was 1,803,868 at the BSE (Wednesday).
