Yes for Yes Bank after doubling inside a year to a New High of @ Rs 500 !? ~ Nishant this one is for you…..

Nishant this one is for you…..

Yes for Yes Bank after doubling inside a year to a New High of @ Rs 500 !?.

Check out the Detailed Coverage of Yes Bank on Scrip Watch on our website www.jsalphaa.com 

The Bank’s on a great Share Price Momentum  and has doubled inside  a year ~ It’s got ambitious deposit and advances targets by FY 15 that should see Operations scale up significantly ~ With a Market Cap of just under Rs 18000 crs it is twice that of Federal Bank and a a shade behind IndusInd Bank ~ Both,Kotak Mahindra and Yes Bank began operations  together,being the only two banks to get the banking license in the private sector  a decade ago ~ Both have clocked a FY 12 PAT in and around Rs 1000 crs but Kotak Mahindra ‘s Market Cap has raced away to near Rs 50000 crs and it has been a huge wealth creator with very high relative earnings and assets valuations

So one way to look at Yes Bank is that can play catch-up with Kotak Mahindra Bank ~ Another cautious approach is to be wary of the High Valuations and there is is no hint of any non linear earnings growth in the short term ~ in fact newer private banks are scheduled to come in soon and competition should be tight even though the landscape is widening~ but financial inclusion may be a government and RBI objective but it is not really a money spinner for the banks

Kept it on Scrip Watch

7 thoughts on “Yes for Yes Bank after doubling inside a year to a New High of @ Rs 500 !? ~ Nishant this one is for you…..

  1. Sir you look same as your mother……….am sure you will love this peom by Nida Fazli……who wrote this nazm for his father……….I was there at his concert in lucknow and it was very toiching…….please read carefully the last para of this peom.

    Regards

    1. Many Thanks Anurag ~ I’ll try and shift your response to the Blog remembering Mom where it will connect instantly

  2. I believe Kotak already had some financial operation before starting bank, did that made difference on over all size and valuation compared to YesBank?

  3. Hello Sir
    though both indusind and yes bank regularly delivering outstanding results but both have high contingent liabilities yes bank has nearly 1,60,000 cr of contingent liabilities don’t you think it is a concern?

    1. Hey Krishnan,you must have been alarmed by the Rs 161000 crs Contingent Liabilities Figure shown at March 31,2012 by Yes Bank ~ Don’t be too alarmed ~ this disclosure on total exposure on forward contract and derivatives is required to be made by stringent RBI directives on Currencies and Interest Rates~ Like other Banks,even Yes Bank enters into such contracts for hedging and trading ~ some concern can be voiced on the trading exposure quantum ~ if you read the notes to the Accounts in the Annual Report you will get a sense of what these exposures are all about and what would be the risk for taking them in terms of numbers if trend is unfavourable ~ just a few hundred crs ~ the balance sheet size of Yes Bank was under Rs 75000 crs at March 31,2012 ~ It has a target to double this to Rs 150000 crs by 2015 with 900 Branches and 12750 Employees at the time

  4. The only way this Bank will survive is if this Bank will function as a Financial institution rather than a family run business. I think RBI has taken right steps by supporting Rana Kapur!

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