YES Bank shares jump 9% as Q4 profit doubles. Kotak Equities sees downside till Rs 19
YES Bank on Monday jumped up to 9% to day's high at Rs 28.50 on BSE after reporting a 123% year-on-year (YoY) surge in its March quarter profit to Rs 452 crore.
The rise in PAT is attributed to income tax refunds (including interest on refund of Rs 118 crore) aggregating to the tune of Rs 247 crore received during the quarter.
The one-off gains from tax refunds, SR recoveries and ARC sale were prudently utilized for strengthening the asset quality metrics — for instance, the NNPA + Net Carrying value of SRs have more than halved over the course of the year to 1.1% from 2.4% in FY23, YES Bank MD and CEO Prashant Kumar said.
Kotak Equities has maintained its sell call on the stock with a target price of Rs 19 saying that while one-offs dominated Q4 earnings, the recovery will be a slow one.
«The business is steadily recovering, and one-offs are likely to continue given the incident. The current price factors most of the positive outcomes,» it said.
During the quarter, YES Bank's net interest margins or NIMs were steady in Q4 quarter-on-quarter at 2.4%. Its balance sheet crossed the Rs 4 lakh crore mark during the quarter deposits grew 22.5% YoY while net advances recorded a growth of 13.8% YoY aided by sustained growth momentum in SME and Mid Corporate Advances (at 25% YoY) and resumption of growth in the corporate segment.
In the meantime, a media report said SBI has got the government's nod to sell its 25.02% stake in YES Bank. According to the report in Financial Express, Bain Capital, Saudi Arabia's
