Yes Bank Upgrade to ACCUMULATE :Emkay,

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Yes Bank

Upgrade to ACCUMULATE

ACCUMULATE

CMP: Rs285                                        Target Price: Rs340

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n     Yes Bank’s Q2FY12 NII at Rs3.8bn was largely inline. PAT at Rs2.35bn was above our and street estimates and was aided by higher non-interest income

n     Balance sheet growth remains moderate at 10% qoq; helps maintain NIM at 2.9%.  Retail + CASA deposits grew 53% yoy (6% qoq) and comprised 29% of total deposits

n     Restructured portfolio doubles to Rs1.7bn driven by 3 MFI accounts, albeit bank has made adequate provisions for the same

n     Drive comfort in smooth transition of the business mix. Valuations of 2.2x/1.5x FY12E / FY13E ABV provide room for decent upside. Upgrade to ACCUMULATE. Maintain TP of 340