Yes Bank Share price: After Q3 result, asset Quality back in focus, Elara Capital recommends Sell with a target price of Rs 6
Yes Bank share and target price: Elara Capital highlights that the new stress loans stood at 17% while outstanding stress stood at 39% for Yes Bank. PAT of Rs 1.5 bn in Q3 FY21 grew 16% QoQ but declined 101% YoY. While there was strong sequential growth in operating profit and deposits, asset quality deteriorated sharply. New standard stress loans including standstill NPLs, SMA1, SMA2 and restructured loans were uncomfortably high at Rs 282 bn or 17% of total loans in Q3 FY21 versus 5% in Q2 FY21.
Yes Bank SMA2 loans were at 4% of total loans while SMA1 loans were at 7%. Management explained that SMA1 borrowers have paid 2 out of 4 instalments: Reuters