👉 *Yes Bank Alert:…*
👉 *_Big No to Yes bank for investment …_*
*Market Cap:* 36100 Cr. *Debt:* 275632
*Net Loss in Q4:* 1506
*Contingent provision:* 2,100 crore.
Yes bank is one of the script where everyone wants to invest. An existing investor wants to average their investment and new ones want to get it. It’s right or not…??
Let’s discuss.
👉 *Story of Yes bank:*
• In Q4FY2019... bank posted a net loss of Rs. 1506 cr. A provision of Rs. 3,661 vs. 550 (QoQ).
• The provision coverage ratio (PCR) for Q4FY19 was 43.10% down by 1.2% QoQ.
• YES Bank has declared a watch list of Rs 10,000 crore and has made a contingent provision of Rs2,100 crore towards these ‘stressed but performing’ accounts.
• YES Bank’s loan book has a 35% exposure to stressed sectors. RBI has asked all the banks to classify it as NPA.
• YES Bank has been less than truthful about its internal condition.
• If the new management of YES Bank has declared a huge provision this quarter, then there could be more bad news coming out soon.
• YES Bank shifts its focus from structured credit, it will have lower net interest margins, lower fees, weaker asset quality and the need for more capital.
• If growth slows down, valuations will have to be readjusted.
• There will be no trigger for the stock to move up.
*Keep away yourself from Yes bank, It would be better for you….*