Yes Bank Share price: Stress book substantially increases; lowering to a Sell with price target of Rs 14 says Anand Rathi
Yes Bank margin expansion, higher non-interest income and lower opex led to a sharp, 1008 bps, sequential decrease in Cost to income ratio, which improved to 39.2%. With the standstill on NPA recognition, asset quality improved. However, Yes Bank’s management disclosed a stressed pipeline of Rs 185 bn, almost twice as much as in Q2 FY21. With higher slippages expected, near-term earnings are expected to be negative.
Yes Bank current provisions of Rs 26.83 bn relate to the Covid-impacted portfolio. Management said the provisions suffice to cover slippages/ restructuring arising from Covid-related stress in the next quarter: Reuters