New delhi 16.02.2019. There is a reverse trend in Yes Bank share price on Friday’s trading session as it is now trading on a negative note. At around 1111 hours, Yes Bank was trading at Rs 213.80 per piece down by Rs 7.20 or 3.17% on Sensex. However, the bank has already touched an intraday low of Rs 226.50 per piece. It was only yesterday, when this bank was the most top performer on exchanges, with investors taking the stock higher by a whopping 32.32% on Sensex. Notably, this makes Yes Bank share a cheap stock for you. Experts believe that this is the right time to buy this stock.
Yes Bank informed that the Reserve Bank of India (RBI) assesses compliance by Banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes. As part of this process, YES Bank has received the Risk Assessment Report for FY2018. Yes Bank confirms that, RBI’s report observes nil divergences in the bank’s asset classification and provisioning from the norms.
Following this development, Macquarie has given a Buy rating with a target price of Rs 270 on Yes Bank ahead. But interestingly, there is one agency, who predicts Yes Bank has the potential to reach over Rs 340 price target. If this is the case, then Yes Bank will give a investor nearly 62% gains in future.
Rohan Mandora and Shreepal Doshi analysts Equirus said, “In a big positive for Yes Bank (YES), the RBI has found ‘NIL’ divergence in the bank’s provisioning and asset classification during 2017-18. This is a big thumbs-up for YES at a time when there were concerns on its asset quality, especially after the term of its outgoing MD & CEO was not renewed by the central bank.
YES had reported a FY16/FY17 divergence of Rs 41.7bn/Rs 63.5bn earlier, but was able to recover/upgrade ~77% of assets reported as divergence over FY15-FY17. “
The duo added, “Both key events for the bank are now behind, i.e. (a) appointment of an external candidate, Ravneet Gill (CEO, Deutsche Bank India), as the next MD & CEO, and (ii) a clean chit from the RBI in terms of divergence.”
Hence, they said, “ We believe the focus will now shift to timing of raising capital and strategy of new management. Retain LONG with a Mar’20 TP of Rs 340 set at a 10-year avg. trailing P/BV multiple of 2.5x. YES Bank is one of our preferred picks and part of the Equirus Model portfolio.”