Yes Bank cracks 6% after Q4 results; foreign brokerages cautious

NEW DELHI: Shares of Yes Bank dropped over 6 per cent in Thursday’s trade even as the lender post market hours of Wednesday reported a 30.2 per cent rise in profit after tax (PAT) at Rs 914.1 crore for the quarter ended March 31, 2017, beating the Rs 875 crore profit estimated by analysts in an ETNow poll.

The stock fell 6.50 per cent to hit a low of Rs 1,501 on BSE.

The private lender had reported a net profit of Rs 702.10 crore in the corresponding quarter of last year. The bank said net interest income (NII) was up 32.1 per cent at Rs 1,639.70 crore for the March quarter compared with Rs 1,241.40 crore in the same quarter last year.

Brokerage UBS which has a sell rating on UBS said noted that the bank has recorded over 3 times increase in reported stressed loans in last 12 months. Morgan Stanley has cut its target price on the stock to Rs 1,680 from Rs 1,750 saying it expects near-term performance of the lender to be weak on uncertainty around asset quality and capital.

During the quarter, the bank made provisions of Rs 309.70 crore, which were 66.10 per cent higher on YoY basis. NIM for the quarter at 3.6 per cent was higher than 3.5 per cent in Q3FY17 and 3.4 per cent in the year-ago quarter.