Yes Bank Limited is a private sector bank. The Bank is engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management. Presently, 52% of the loan book consists of corporate loans, followed by retail loans (28%), Small & micro-enterprises (12%), and medium enterprises (9%).
FINANCIALS 📊
• Stock is trading at a P/E of 31.6 while the industry P/E is at 18.4, Debt to equity ratio is at 6.83, and ROCE at 5.37%
• YES Bank reported a net profit of INR 367 Cr in Q4FY22 compared with a loss of INR 3,788 Cr in Q4FY21. The profit figure was up 37.9% QoQ
• NII (Net Interest Income) rose 84.4% in Q4FY22 to INR 1,819 Cr from INR 987 Cr in Q4FY21. Non-interest income also grew 27.9% YoY to INR 882 Cr from INR 689 Cr
• Asset quality also improved with gross NPA coming in at 13.9% of total advances compared with 14.7% in Q3FY22 and 15.4% in Q4FY21
HIGHLIGHTS 📣
• CASA deposits were up 54% YoY and 16% QoQ at INR 520 Bn taking the CASA ratio to 29.4%, up 200bp QoQ. New customer acquisition was strong post-COVID second wave and the bank onboarded around 2,44,000 new CASA accounts
• YES Bank has resulted in sustained improvement in balance sheet growth, accelerated granularisation, improving asset quality trends, enhanced liquidity and stronger capital position over the past 2 years
• Cost of funding and cost of deposits are down by almost 100bps and peak TD rates compared to 150bps premium to peers are now down to below 100bps
• The bank has witnessed an increasing share of retail business in the loan book in the last 2 years
• Retail Book Breakup - Secured business loan (22%), auto loan (17%), cv loan (15%), personal loan (11%), construction equipment loan (8%), home loans (8%), micro-finance (4%), others (15%)
• The bank has several partnerships with Government, Corporates, Education / Financial Institutions and Fintechs among others. Its partnerships include Groww, IDEMIA, Zerodha, Godrej, FICCI, TOKA, Sterling, Cars 24, Oxigen, zeta, Muthoot finance & others
TECHNICAL ANALYSIS 📈
• For the past 2 years the stock has been moving in sideways
• In the MACD indicator, the 12-day MACD curve (Red curve) cuts the 26-day MACD curve (Blue curve) and moves above the 26-day MACD curve. It gives the first indication to go long on the stock
• The 5-day moving average curve (Red curve) has recently cut the 20-day moving average curve (Blue curve) and moved above the 20-day moving average curve. It gives the confirmation to go long on the stock. Check whether the volumes are higher than the 20-day average while entering the trade
Note: This is not a BUY/SELL recommendation. This is just an analysis for educational purpose
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