Author Topic: Yes Bank - Rana Kapoor Exit - Reviews  (Read 224 times)

0 Members and 1 Guest are viewing this topic.

resh

  • Sr. Member
  • ****
  • Posts: 266
Yes Bank - Rana Kapoor Exit - Reviews
« on: September 21, 2018, 01:13:01 PM »
Rana Kapoor Founder Chairman of Yes Bank has been asked to Step Down by the RBI. Here are the Analysts Reviews,

Kotak Securities Analysts M B Mahesh, Nischit, Dipanjan and Shrey said,

Ending months of speculation, RBI has declined the highly debated extension of tenor for the current MD and CEO of the bank. This turn of events creates uncertainty and puts the focus on (1) candidates who can take on this challenging role, (2) strategy shift, (3) capital adequacy ratios and (4) potential impact on earnings, especially from corporate banking fees. We capture these uncertainties through a
higher cost of equity, resulting in a cut in target price to Rs 250


IDFC Securities Analysts Mahrukh Adajania and Sanket Chheda

We are cutting our TP to Rs230 from Rs350. Our revised target multiple is 1.5x down from 2.2x earlier. An increase in credit cost to 80bps and a 10bps decline in NII/assets and fees/assets can take the sustainable RoE down to below 14% from 18%. We are downgrading the stock to Underperformer from Neutral. The stock is a top BUY for many brokerages. So it appears that this risk has not been priced in by the street which means that there could be a significant correction in the stock price due to this event.