CEO Appointment Removes Some Uncertainty Yes Bank (YBL) reported 3QFY19 results with the key takeaways being: (1) Ravneet Gill, current MD, India operation for Deutsche Bank was appointed MD & CEO of Yes Bank with a joining date of 1st March or earlier (2) Of the aggregate funded exposure of Rs 25.3bn to infra conglomerate, Rs 19.13bn was recognized as NPA, aside of which, asset quality improved (3) YBL’s capital conservation strategy enabled it to marginally augment capital ratios on QoQ basis (4) YBL was able to maintain NIM QoQ at 3.3% despite rapid increase in IBU book, which is margin dilutive. (See comprehensive conference call takeaways on page 2 for significant incremental colour.). Per se, on the key P&L items, YBL posted NII growth of 41% YoY at Rs26,664mn, PPOP decline of 0.6% YoY at Rs19,904mn and PAT decline of 7% YoY at Rs10,019mn. We have revised our estimates for FY19/FY20/FY21 and retained Buy rating on YBL, revising our target price to Rs307 (from Rs283 earlier) and valuing the stock at 1.7x 1HFY21E P/BV.