INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of YES Bank lurched sharply lower- suffering a massive loss of 30 per cent on NSE- in morning trade on Tuesday after it
disappointed the Street with its March quarter numbers
The private lender on Friday reported a maiden loss of Rs 1,506.64 crore for the quarter ended March 31 on a spike in provisions and
This was sharply in contrast with market estimates as analysts in an ET Now poll had estimated a profit of Rs 1,050 crore
The bank's provisions jumped to Rs 3,661.70 crore in Q4 from Rs 399.64 crore in the year-ago period
Several analysts have downgraded YES Bank and cut target price after the lender reported its first-ever quarterly loss but the biggest cut
has come from Macquarie, which double downgraded the stock to 'underperform' and cut target price by 40 per cent to Rs 165-one of the lowest
on the Street.
Macquarie said it has been constructive over the last eight years on YES Bank's ability to thrive in a risky business
segment like structured finance but admitted that they got the call wrong
Besides Macquarie, other brokerages such as BoB Capital and Emkay Global have also downgraded the stock
Brokerage Elara Capital downgraded the stock to 's ell' with a target price of Rs 192
"Given the likely longer gestation period and elevated credit cost, we reduce our earnings estimates by 53 per cent for FY20 and by 41 per
in view of the sudden change in asset quality post the transition to a new CEO, we turn cautious and downgrade our stock rating to Sell from
Buy with a revised target price of Rs 192 from Rs 362," said the brokerage.
Shares of YES Bank traded 25 per cent down at Rs 178 around 10