INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Most brokerages gave YES Bank their vote as the private lender put up a good show on the profit front
It reported a 30.5 per cent rise in net profit at Rs 1,260.36 crore for the first quarter ended June on the back of higher income.
The bank
had reported a net profit of Rs 965.52 crore in the same quarter of last fiscal.
Total income jumped to Rs 8,272.18 crore in April-June, up
42.96 per cent, from Rs 5,785.96 crore in the same quarter of 2017-18.
However, provisions for bad loans and contingencies more than doubled
to Rs 625.65 crore in the June quarter, from Rs 285.78 crore in the year-ago period.
The increase in provisions was on account of rise in
gross non-performing assets (NPAs) to 1.31 per cent of advances as on June 30, 2018, against 0.97 per cent a year before
The stock was nearly 1 per cent down at Rs 366.30 while the BSE Sensex was up 0.89 per cent at 37,314 at around 10.30 am.
Brokerage firms,
Bank with a target price of Rs 500, Rs 450, Rs 500, Rs 440, Rs 444, Rs 366, Rs 438 and Rs 426, respectively.
Anand Rathi in a report said,
The strong headwinds of rising costs squeeze net interest margins
Asset quality, as one of the best among corporate lenders, persists
The RoE is inching toward 20 per cent
strong growth and high return ratios (RoA of 1.55 per cent)
NIMs (Q3 2019) and (c) clean chit from RBI divergence report (October 2019)
