Deutache Research Analysts Write as Follows,
Yes Bank has fallen 26% from its peak, on fears about its asset quality / weak perceptions and has underperfomed. While valuations at 1.7x FY17E book for a ~20% RoE and 20%+ EPS CAGR is an argument to Buy, we also draw comfort on its asset quality as the book is built up only recently (in tough times and risks were known) and it works with better structures / security cover. Over the past three years, earnings have become granular (better margins, higher fees), liquidity risks have reduced (more retail liabilities, higher deposit duration) and it carries the highest floating provisions among all banks. We expect earnings consistency and will use the recent correction to Buy into the stock.
