yes bank absolute : relative :overweight long 2qfy19 result: … · 2018. 10. 31. · yes bank...

October 26, 2018 Analyst: Rohan Mandora [email protected] (+91-79-61909529)/ Shreepal Doshi [email protected] of 14

Before reading this report, you must refer to the disclaimer on the last page.

YES Bank Absolute :LONG

Relative :Overweight

2QFY19 Result: Est. (), Target (), Rating () Regular Coverage 85% ATR in 11 months

Profits drop on higher provisions, asset quality a key monitorable — retain LONG BFSI

© 2018EquirusAll rights reserved

Rating Information

Price (Rs) 198

Target Price (Rs) 350

Target Date 30-Sept-19

Target Set On 25-Oct-18

Implied yrs of growth (ERE) 20

Fair Value (ERE) 350

Fair Value (DDM) NA

Ind Benchmark BANKEX

Model Portfolio Position -

Stock Information

Market Cap (Rs mn) 458,045

Free Float (%) 80.09 %

52 Wk H/L (Rs) 404/165

Avg Daily Volume (1yr) 20,759,052

Avg Daily Value (Rs mn) 6,680

Equity Cap (Rs Mn) 4,619

Face Value (Rs) 2

Bloomberg Code YES IN

Ownership Recent 3M 12M %

Promoters 19.9 % -0.1 % -0.2 %

DII 23.0 % -2.2 % -1.6 %

FII 39.5 % -3.0 % -6.0 %

Public 17.6 % 5.3 % 7.8 %

Price % 1M% 3M% 12M%

Absolute -9.7 % -48.2 % -39.3 %

Vs Industry -7.2 % -40.6 % -37.1 %

INDUSINDBK -12.1 % -24.1 % -6.4 %

HDFCBANK 0.8 % -9.3 % 9.7 %

Standalone Quarterly EPS forecast

Rs/Share 1Q 2Q 3Q 4Q

EPS (18A) 4.2 4.4 4.7 5.1

EPS (19E) 5.5 4.2 5.6 5.7

Yes Bank (YES) posted a 4% yoy decline in its 2QFY19 PAT dragged by a 110% yoy rise in

provisions on account of Rs 4.1bn/Rs 3.45bn of NPA/investment provisions. Advances

growth remained solid at 61% yoy (FY19YTD: 18%); however, incremental loan growth

would sharply moderate (FY19E/FY20E loan growth 22%/20%) as YES looks to conserve

capital (CET 1: 9%). For the Rs 6.3bn of slippage classified as NPA in the post period-

end review, YES expects an upgrade as a definite asset sale agreement has been

signed and advance received. We increase our provision estimates, leading to a FY19E/

FY20E earnings cut of 6%/7%. Retain LONG with a Sep’19 TP of Rs 350 (vs. Rs 360

earlier) based on 10-year avg. trailing P/BV multiple of 2.5x.

IL&FS exposure at Rs 26.2bn: YES disclosed its IL&FS exposure of Rs 26.2bn, which is

towards SPVs/asset-rich subsidiaries and is currently standard. As per management

guidance, even in the worst case scenario, credit cost (currently 50-70bps) would

increase by 10bps due to this exposure. On real estate exposures, YES doesn’t see any

risk as it mostly has project-specific exposures with no NBFCs as a co-lender in any of the

projects. About ~75% of the bank’s exposure is to residential projects. While most of

these projects are internally rated ‘A’ to ‘BB+’, YES has complete control on cash flows.

About 80% of these projects are in Mumbai, Delhi and Bangalore.

Advances growth remains strong at 61% yoy: Loan growth at 61% yoy was strong

driven by opportunities to finance NCLT resolutions and M&As. Incremental lending

continued to be focused on better-rated corporates with RWA/TA improving to 81.3%

vs. 81.6% qoq. The bank leads the domestic league table for closing the maximum

number of deals in FY19 YTD, and had sold corporate loans worth Rs 100bn-150bn of

which ~80% were to SOE Banks.

Provisions elevated at Rs 9.4bn: While NIMs were stable qoq at 3.3% and drove a 28%

yoy growth in NII, fee income growth came in at 18% yoy. Elevated provisions included

Rs 2.5bn towards MTM provisions on investments (mainly corporate bonds); about 50%

of this is towards ‘AAA’ corporate bonds of an Indian manufacturing entity. The bank

also sold Rs 4.4bn of loans to ARCs during the quarter.

Key risks: Risks include a material slowdown in the economy adversely impacting loan

growth and asset quality, and a slowdown in CASA accretion. Three closely tracked

events for YES in the near term would be: 1) Results of FY18 RBI’s AQR wherein YES is confident of an improved divergence

figure vs. last year with credit cost contained at 50-70bps. 2) Selection of new MD & CEO wherein the search committee is likely to send a

list of three shortlisted candidates by Dec’18.

3) Capital raising plan once the new CEO is appointed.

RsMn Revised Estimates % Change

2019E 2020E 2019E 2020E

NII 99,092 121,371 -0.5% -3.6%

Provisions 26,643 32,032 15.0% 9.3%

PAT 47,956 59,412 -6.0% -6.9%

EPS 21 26 -6.0% -6.9%

Advances 2,483,113 2,979,736 -4.7% -4.7%

Deposits 2,308,489 2,770,186 -10.2% -10.2%

Standalone Financials

Rs. Mn YE Mar FY18A FY19E FY20E FY21E

NII 77,371 99,092 121,371 151,297

Other Income 52,238 61,641 75,202 91,747

Total Income 129,609 160,734 196,573 243,044

Operating Exp 52,128 61,431 74,523 92,228

PPoP 77,481 99,303 122,051 150,816

Provisions 15,538 26,643 32,032 40,137

PAT 42,246 47,956 59,412 73,048

Adj PAT 42,246 47,956 59,412 73,048

Loan and Advances

2,035,339 2,483,113 2,979,736 3,754,467

Deposits 2,007,382 2,308,489 2,770,186 3,462,733

Net Worth 257,583 298,054 349,982 414,714

NIM 3.22 % 3.17 % 3.26 % 3.38 %

Credit Cost 0.93 % 1.18 % 1.17 % 1.19 %

Rs Per Share FY18A FY19E FY20E FY21E

EPS 18.4 20.8 25.8 31.7

Book Value 111.4 129.4 152.0 180.1

Adjusted BVPS 105.7 119.2 143.1 169.7

P/ABV (x) 1.9 1.7 1.4 1.2

DPS 2.7 2.7 2.7 3.0

P/E (x) 10.8 9.5 7.7 6.3

ROE (%) 17.7 % 18.2% 19.7% 22.1%

RoA (%) 1.6 % 1.4 % 1.5 % 1.5 %

Tier 1 Ratio (%) 13.2 % 12.1 % 11.5 % 10.5 %

Yes Bank Absolute – LONG Relative – OverWeight 85% ATR in 11 Months

October 26, 2018 Analyst: Rohan Mandora [email protected] (+91-79-61909529)/ Shreepal Doshi [email protected] of 14

Quarterly performance

Particulars

%Variation

P&L Statement (Rs mn) 2QFY19 2QFY19E 1QFY19 2QFY18 2QFY19E 1QFY19 2QFY18

Net interest income (NII) 24,176 24,385 22,191 18,851 -0.9% 8.9% 28.2%

Other income 14,735 16,104 16,941 12,484 -8.5% -13.0% 18.0%

Total income 38,910 40,489 39,133 31,335 -3.9% -0.6% 24.2%

Operating expenses 15,246 15,405 14,586 12,269 -1.0% 4.5% 24.3%

- Staff expenses 5,940 6,379 5,906 5,628 -6.9% 0.6% 5.5%

- Other expenses 9,306 9,027 8,680 6,641 3.1% 7.2% 40.1%

Operating profit 23,664 25,084 24,547 19,067 -5.7% -3.6% 24.1%

Total provisions 9,400 5,684 6,257 4,471 65.4% 50.2% 110.3%

Profit before tax 14,265 19,400 18,291 14,596 -26.5% -22.0% -2.3%

Tax 4,618 6,596 5,687 4,569 -30.0% -18.8% 1.1%

Profit after tax 9,647 12,804 12,604 10,027 -24.7% -23.5% -3.8%

Balance sheet (Rs mn) 2QFY19 2QFY19E 1QFY19 2QFY18 2QFY19E 1QFY19 2QFY18

Deposits 2,228,379 2,229,973 2,133,945 1,579,898 -0.1% 4.4% 41.0%

Current Account 259,407 283,325 197,015 -8.4% 31.7%

Saving Account 493,385 465,975 390,299 5.9% 26.4%

Advances 2,396,275 2,399,619 2,147,201 1,486,753 -0.1% 11.6% 61.2%

Investment 903,202 854,418 829,532 539,078 5.7% 8.9% 67.5%

Gross NPL (Rs mn) 38,661

28,245 27,203

36.9% 42.1%

Net NPL (Rs mn) 20,197

12,626 15,433

60.0% 30.9%

Particulars 2QFY19

1QFY19 2QFY18

bp change y-y bp change q-q

Profitability ratios Yield on Advances 10.1%

10.0% 10.2%

10 (10)

Cost of Funds 6.4%

6.3% 6.1%

10 30

NIM 3.3%

3.3% 3.7%

- (40)

RoaA 1.1%

1.6% 1.7%

(50) (60)

RoaE 14.4%

19.4% 17.5%

(500) (310)

Asset Quality

Gross NPL ratio 1.60%

1.31% 1.82%

29 (22)

Net NPL ratio 0.84%

0.59% 1.04%

25 (20)

Coverage ratio 47.8%

55.3% 43.3%

(754) 449

Business & Other Ratios

CASA 33.8%

35.1% 37.2%

(130) (340)

Cost-income ratio 39.2%

37.3% 39.2%

191 3

Non int.inc / total income 37.9%

43.3% 39.8%

(542) (197)

Credit deposit ratio 107.5%

100.6% 94.1%

691 1,343

CAR 17.0%

17.3% 17.8%

(30) (80)

Tier-I 11.9%

12.8% 13.2%

(90) (130) Source: Company Filings, Equirus Securities


October 26, 2018 Analyst: Rohan Mandora [email protected] (+91-79-61909529)/Shreepal Doshi [email protected] of 14

Exhibit 1:Robust loan growth at 61% yoy, C/D ratio at 107.5%

Source: Company, Equirus Securities

Exhibit 2:Share of retail loans improves to 14.3% vs. 14.0%/11.4% in 1QFY19/2QFY18


Exhibit 3: CASA ratio declines 130bps qoq to 33.8%


Exhibit 4: Split of other income

(Rs mn) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Corporate Trade & Cash Management 1,352 1,439 1,536 2,398 2,162 2,116

Forex, Debt Capital Markets & Securities 3,221 3,518 2,428 1,781 4,603 2,220

Corporate Banking Fees 4,108 4,768 7,231 6,441 6,827 6,677

Retail Banking Fees 2,589 2,718 2,900 3,472 3,329 3,613

Trade & Remittance 795 977 1,015 1,291 1,154 1,402

Facility / Processing Fee 486 636 771 659 689 713

Third Party Sales 279 298 272 538 232 244

Interchange Income 675 490 470 550 693 742

General Banking Fees 355 318 372 434 561 512


0%

10%

20%

30%

40%

50%

60%

70%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Advances growth YoY(%) Deposits growth YoY (%)

68.2%

17.5%

14.3%

Corporate SME Retail

0%

20%

40%

60%

80%

100%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Term Deposits Savings Deposits Demand Deposits



Exhibit 5:NIMs remain flat qoq to 3.3%


Exhibit 6:Movement of GNPA Movement of NPL FY16 FY17 FY18 1QFY19 2QFY19

Opening 3,134 7,490 20,186 26,268 28,245

Additions 9,111 26,323 82,158 5,603 16,300

Reductions 4,755 13,627 76,076 3,627 5,884

Closing 7,490 20,186 26,268 28,245 38,661


Exhibit 7:GNPL/NNPL ratios increases to 1.60%/0.84% vs. 1.31%/0.59% in 1QFY19, PCR declines to 47.5% from 55.3% in 1QFY19


Exhibit 8:Total net stressed assets at 1.77% vs. 1.53% in 1QFY19 Stressed Assets 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19

GNPL 1.0% 1.8% 1.7% 1.3% 1.3% 1.6%

GNPL - Amount (Rs Mn) 13,644 27,203 29,743 26,268 28,245 38,661

NNPL 0.4% 1.0% 0.9% 0.6% 0.6% 0.8%

NNPL - Amount (Rs Mn) 5,453 15,433 15,951 13,128 12,626 20,197

Restructured Assets as a % of gross advances

0.2% 0.1% 0.1% 0.2% 0.1% 0.1%

Restructured Assets 3,314 1,161 903 3,376 2,494 2,045

Security Receipt 0.7% 0.9% 1.1% 0.9% 0.8% 0.9%

Security Receipt - Amount (Rs Mn)

9,771 14,123 18,342 18,847 17,712 20,489

5-25 Refinancing (%) 0.1% 0.2% 0.1% 0.1% 0.0% 0.0%

5-25 Refinancing - Amount (Rs Mn)

1,389 2,283 1,120 1,070 - 900

Std SDRs 0.2% 0.3% 0.2% 0.2% 0.1% 0.1%

Std SDRs - Amount (Rs Mn) 2,874 4,771 3,619 3,376 2,494 2,045

S4A 0.0% 0.0% 0.1% 0.1% 0.0% 0.0%

S4A - Amount (Rs Mn) 189 188 1,535 1,390 - 1,100

Gross Stressed Assets (%) 2.2% 3.3% 3.2% 2.6% 2.4% 2.7%

Net Stressed Assets (%) 1.63% 2.54% 2.40% 1.72% 1.53% 1.77%


1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4%

6%

8%

10%

12%

14%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Yield on Advances (%) Cost of Funds(%) NIM - RHS (%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Gross NPA (%) Net NPA (%) Coverage Ratio (%) - RHS



Exhibit 9:Yes Bank leads the domestic league table for closing maximum deals

Bookrunner Rank Vol

(MM USD) Deals

Table Share

(%)

Mkt Share

Diff

Yes Bank 1 3,110.8 24 15.4% 10.9%

Axis Bank Ltd 2 2,334.5 20 11.6% -3.2%

Standard Chartered 3 1,931.0 21 9.6% 1.6%

L&T Financial Services 4 1,348.4 25 6.7% 1.5%

Indusind Bank Ltd 5 1,159.7 25 5.8% 2.9%

State Bank of India 6 1,097.1 10 5.4% -25.3%

ICICI 7 1,009.8 11 5.0% -5.3%

Mitsubishi UFJ Financial

Group Inc 8 730.3 7 3.6% 1.8%

Mizuho Financial 9 706.5 6 3.5% 2.9%

DBS Group 10 661.3 7 3.3% 2.4%

Source: Bloomberg

Exhibit 10: Details of the transactions by Yes bank in YTD FY19

Effective Date Loan Deal Name Deal Size

(USD) League Credit

(USD)

10-Apr-18 All India Society for Health Aid Education and Research

30,788,200 30,788,200

12-Apr-18 Fonroche Saaras Energy 19,604,900 19,604,900

27-Apr-18 Piramal Critical Care 207,000,000 103,500,000

4-May-18 Greatship India 248,805,000 82,935,000

21-Jun-18 Tata Steel 1,140,000,000 49,565,200

28-Jun-18 Bamnipal Steel 305,098,000 38,137,300

29-Jun-18 Bamnipal Steel 1,080,690,000 135,086,000

30-Jun-18 Emcure Pharmaceuticals 40,733,300 40,733,300

27-Jul-18 Sepset Constructions 25,210,400 25,210,400

21-Aug-18 Adani Electricity Mumbai 1,302,720,000 1,302,720,000

24-Aug-18 Pallazzio Hotels & Leisure 89,528,800 89,528,800

28-Aug-18 Mothers Pride Education Institution 2,439,370 2,439,370

28-Aug-18 Presidium Educational Institution 7,845,910 7,845,910

28-Aug-18 Presidium Educational & Charitable Trust 5,706,120 5,706,120

28-Aug-18 Scholartube Education and Learning Solutions 5,349,490 5,349,490

28-Aug-18 Mothers Pride Education Personna 5,763,180 5,763,180

27-Sep-18 Axis Wind Farms MPR Dam 89,894,900 89,894,900

28-Sep-18 Clean Sustainable Energy 46,519,700 46,513,200

28-Sep-18 Goa Tamnar Transmission 144,686,000 144,658,000

Source: Bloomberg

Earnings call takeaways Business update

The bank has not received the FY18 risk-based supervision report from the RBI.

Management is aware of the capital condition and will work towards its preservation.

YES has shareholder’s approval to raise capital.

The MD & CEO candidate would be finalized by mid-December.

Post submission of the candidate’s names to the RBI, the central bank would conduct

due diligence before finalizing the candidate.

During the quarter, other income declined due to MTM losses from an upward

movement in yields for government as well as corporate bonds.

Management stated that the current macro indicated a flatter interest rate

trajectory going ahead with crude oil and dollar stabilizing.

YES increased the retail deposit rate by 10bps-20bps last week.

Loan book

Growth in the corporate book was driven by:

M&A opportunities in sectors like Cement, Media, Infrastructure etc

Financing in NCLT cases,

Refinancing of bank loans.

YES is down-selling loans which were towards high-rated borrowers, and will

continue to pursue new business opportunities.

Many banks are buying loans as they are unable to meet their growth targets. YES

sold Rs 100bn-150bn worth loans during 2QFY19.

Fee income growth opportunities would be largely from sourcing new businesses.

Current market conditions are also creating pricing power opportunities.

IBU loans are given to entities with a presence in India and having some relationship

with YES.

Nature of IBU exposure includes combination of projects finance, working capital and

acquisition financing.

About 70-80% of down-selling of loans has been to large PSUs.



IL&FS, real estate exposure

YES has an exposure of Rs 2.62bn towards asset-rich subsidiaries/SPVs with an

enterprise value commensurate with the debt level.

YES has no exposure to the parent/NBFC/financial services entity of the group.

The bank has not set aside any provisions towards the exposure as it is still standard

on the books.

YES is the sole lender for most of the real estate exposure, except for some projects

where another bank is a lender. However, there is no NBFC as co-lender in any of the

projects.

80% of the exposure is from Mumbai, Bangalore and Delhi.

YES usually lending to projects worth Rs 2bn-Rs 3bn (excluding land financing).

About 75% of the real estate exposure is towards residential and the remaining is

LRD.

Segment-wise share of the exposure — Luxury: Mid: Low 20%:60%:20%.

Asset quality

Increase in GNPA from the earlier disclosed provisional ratio for Q2FY19 was due to

classification of one account with exposure of Rs 6.3bn as NPA based on post

period-end review process. The bank expects prepayments and a consequent

upgrade of this exposure in Q3FY19.

Credit cost stood at 18bps for the quarter and 34bps for 1HFY19.

An account with exposure of Rs 4.5bn was sold to an ARC during Q2FY19.

SMA-2 outstanding exposures (accounts >Rs 50mn and as per RBI CRILC reporting) as

on 1HFY19 stood at 0.15% of gross advances.

YES has good visibility on recoveries.

The bank expects three large recoveries in 3QFY19: Discussions are in advanced

stages for resolution of one account. In the second account, there is takeover of a

healthcare company. For the third case, there is a good chance of Rs 5bn-Rs6bn of

recoveries from the account. This would also mean provision reversals.

Guidance

The bank intends to maintain a PCR of >60% by Mar’19.

Management indicated that credit cost would be at 70bps if all expected recoveries

fall in place and the bank’s IL&FS exposure creates no substantial issues. In the worst

case scenario, credit cost could go up to 80bps.



Exhibit 11: ROE-ROA Tree Analysis

Particulars (Rsmn) FY17A FY18A FY19E FY20E FY21E

Yield on Loans and Advances 10.6% 9.2% 10.1% 10.3% 10.4%

Yield on Investments 7.7% 7.0% 7.2% 7.3% 7.4%

Cost of Funds 6.4% 5.5% 6.7% 7.0% 7.0%

Advances 1,322,627 2,035,339 2,483,113 2,979,736 3,754,467

Investments 500,318 684,705 868,310 990,538 1,092,474

Cash & Balances with RBI 69,521 114,257 124,731 147,736 180,606

Balances with Bank 125,974 133,086 52,518 62,205 76,045

Interest Earning Assets 1,948,918 2,853,129 3,403,941 4,032,478 4,922,985

Avg Interest Earning Asset 1,721,913 2,401,024 3,128,535 3,718,210 4,477,732

NII/AvgInt Earning Assets 3.4% 3.2% 3.2% 3.3% 3.4%

Non IntInc/AvgInt Earning Assets 2.4% 2.2% 2.0% 2.0% 2.0%

Tot Inc./AvgInt Earning Assets 5.8% 5.4% 5.1% 5.3% 5.4%

Op. Costs/AvgInt Earning Assets 2.4% 2.2% 2.0% 2.0% 2.1%

PPI/AvgInt Earning Assets 3.4% 3.2% 3.2% 3.3% 3.4%

Provisions/AvgInt Earning Assets 0.5% 0.6% 0.9% 0.9% 0.9%

Tax/AvgInt Earning Asset 1.0% 0.8% 0.8% 0.8% 0.8%

Return on AvgInt Earning Assets 1.9% 1.8% 1.5% 1.6% 1.6%

Extraordinary item 0.0% 0.0% 0.0% 0.0% 0.0%

Adj Return on AvgInt Earning Assets 1.9% 1.8% 1.5% 1.6% 1.6%

Productivity 90.5% 91.0% 91.6% 91.8% 92.0%

Return on Avg Total Asset 1.8% 1.6% 1.4% 1.5% 1.5%

Leverage (Average Total Assets/Average Equity) 10.6 11.0 12.3 12.5 12.7

Return on Average Equity 18.6% 17.7% 17.3% 18.3% 19.1%




Company Snapshot How we differ from Consensus

- Equirus Consensus % Diff Comment

EPS FY19E 20.8 22.7 -8 %

We expect consensus to be revised

FY20E 25.8 28.5 -10 %

NII +

Other

Inc

FY19E 160,734 170,967 -6 %

FY20E 196,573 215,527 -9 %

PAT FY19E 47,956 52,524 -9 %

FY20E 59,412 66,978 -11 % Our Key Investment arguments: Valuations have corrected sharply to ~1.4x FY20E ABV,

we believe concerns on the stock are overdone and post the hand-over phase, YES bank

will revert back to robust growth trajectory.

Key Assumptions 2017E 2018E 2019E 2020E 2021E

NII (Rs mn) 57,973 77,371 99,092 121,371 151,297

Net interest margin (%) 3.4% 3.2% 3.2% 3.3% 3.4%

Other Income (Rs mn) 41,568 52,238 61,641 75,202 91,747

Total Income (Rs mn) 99,541 129,609 160,734 196,573 243,044

Opex (Rs mn) 41,165 52,128 61,431 74,523 92,228

Cost to Income Ratio (%) 41.4% 40.2% 38.2% 37.9% 37.9%

Credit Cost (%) 0.7% 0.9% 1.2% 1.2% 1.2%

PAT (Rsmn) 33,301 42,246 47,956 59,412 73,048

Advances Growth (%) 34.7% 53.9% 22.0% 20.0% 26.0%

Deposits Growth (%) 27.9% 40.5% 15.0% 20.0% 25.0%

Key Risks: Slowdown in CASA growth, material slowdown in economy adversely impacting

loan growth and asset quality.

Key Triggers: NIM improvement, healthy loan growth, and stable asset quality.

Sensitivity to Key Variables % Change % Impact on EPS

Net Interest Income 10% 13.8%

Provisioning Costs 10% -4.0%

Loans & Advances Growth 10% 1.3%

ERoE Valuations & Assumptions

Rf Ke Term. Growth RoE in Terminal Yr

8.0 % 14.9%% 5.0 % 18.2 %

-

FY19E FY20-23E FY24-28E FY29-38E

PAT Growth

13.5% 12.3% 15.9% 15.9%

Dividend Payout (%)

15.6% 15.5% 19.0% 19.0%

BV growth

15.7% 11.7% 12.5% 14.2%

RoE (%)

17.3% 18.5% 18.2% 18.2%

Years of strong growth

1 5 10 20

Valuation as on date (Rs)

175 219 254 328

Valuation as of 30th Sept’19

188 235 272 350

Our Sept’19 TP of Rs 350 is based on EROE for 20 years with terminal RoE of 18.2% and

terminal growth of 5% on cost of equity of 14.9%

Company Description:

Yes Bank, India's fourth largest private sector Bank is the only Greenfield license awarded

by the RBI in the last 17 years. Largely a wholesale bank in its initial years, the bank is

now trying to focus on its branch banking operations as its looks to expand that portfolio.

Comparable valuation Mkt Cap

Rs. Mn.

Price

Target

Target

Date

P/E P/B ABPS RoE DivYield

Company Reco. CMP FY18A FY19E FY20E FY18A FY19E FY20E FY19E FY18A FY19E FY20E FY18A FY19E FY20E

Yes Bank LONG 198 458,045 350 Sep-19 10.8 9.5 7.7 1.9x 1.7x 1.4x 119.2 17.7% 17.7% 18.3% 1.4% 1.4% 1.4%

INDUSINDBK LONG 1,491 897,092 2,120 Mar-20 24.8 20.8 17.7 3.9x 3.3x 2.9x 455.7 16.5% 16.6% 16.7% 0.5% 0.7% 0.8%

HDFC Bank LONG 1,969 5,349,576 2,340 Sep-18 29.0 25.0 21.4 5.1x 3.8x 3.4x 512.2 17.9% 16.5% 15.8% 0.7% 0.7% 0.9%



Standalone Quarterly Earnings Forecast and Key Drivers Rs in Mn 1Q18A 2Q18A 3Q18A 4Q18A 1Q19A 2Q19A 3Q19E 4Q19E 1Q20E 2Q20E 3Q20E 4Q20E FY18A FY19E FY20E FY21E

Interest Income 46,538 48,003 50,703 57,430 65,780 72,312 76,285 76,458 81,663 86,302 91,538 95,949 202,674 290,835 355,452 434,805 Interest Expense 28,449 29,153 31,815 35,887 43,589 48,137 50,160 49,857 54,839 57,221 59,716 62,305 125,304 191,743 234,081 283,507

Net Interest Income 18,089 18,851 18,888 21,542 22,191 24,176 26,125 26,601 26,824 29,081 31,822 33,644 77,371 99,092 121,371 151,297

Non Interest Income 11,322 12,484 14,223 14,210 16,941 14,735 14,582 15,383 17,134 17,888 19,682 20,498 52,238 61,641 75,202 91,747

Total Income 29,411 31,335 33,111 35,752 39,133 38,910 40,707 41,984 43,958 46,969 51,504 54,142 129,609 160,734 196,573 243,044

Operating and Other Expenses 12,369 12,269 13,093 14,398 14,586 15,246 15,576 16,023 17,301 18,344 19,008 19,870 52,128 61,431 74,523 92,228 Staff Cost 5,461 5,628 5,334 5,467 5,906 5,940 6,177 6,493 6,817 7,022 7,233 7,367 21,889 24,516 28,438 34,695 Other Operating Expenses 6,908 6,641 7,759 8,931 8,680 9,306 9,399 9,531 10,484 11,322 11,775 12,503 30,239 36,915 46,084 57,533 Pre-Provision Income 17,042 19,067 20,018 21,354 24,547 23,664 25,131 25,961 26,657 28,625 32,497 34,272 77,481 99,303 122,051 150,816 Provisions and Write-offs 2,858 4,471 4,213 3,996 6,257 9,400 5,837 5,149 6,732 8,517 8,348 8,434 15,538 26,643 32,032 40,137 PBT 14,184 14,596 15,805 17,358 18,291 14,265 19,293 20,812 19,925 20,108 24,148 25,838 61,943 72,660 90,018 110,679 TAX 4,529 4,569 5,036 5,564 5,687 4,618 6,560 7,840 6,774 6,837 8,210 8,785 19,697 24,704 30,606 37,631 Extraordinary 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PAT 9,655 10,027 10,769 11,794 12,604 9,647 12,734 12,971 13,150 13,271 15,938 17,053 42,246 47,956 59,412 73,048 EPS 4 4 5 5 5 4 6 6 6 6 7 7 18 21 26 32 Key Drivers - - - - - - - - - - - - - - - - YoA 10.4 % 10.2 % 9.8 % 9.9 % 10.0 % 10.1 % 9.9 % 10.1 % 10.3 % 10.3 % 10.3 % 10.5 % 9.2 % 10.1 % 10.3 % 10.4 % YoI 7.1 % 7.0 % 7.4 % 7.1 % 7.1 % 7.2 % 6.9 % 5.0 % 7.2 % 7.3 % 7.3 % 7.0 % 7.0 % 7.2 % 7.3 % 7.4 % CoF 6.2 % 6.1 % 6.0 % 6.0 % 6.3 % 6.4 % 6.1 % 6.0 % 6.5 % 6.7 % 6.5 % 6.5 % 6.7% 6.4% 6.4% 6.4%

NIM 3.7 % 3.7 % 3.5 % 3.4 % 3.3 % 3.3 % 2.8 % 2.8 % 3.1 % 3.3 % 3.1 % 3.1 % 3.4 % 3.7 % 3.9 % 3.9 %

C/I Ratio 42 % 39 % 40 % 40 % 37 % 39 % 38 % 38 % 39 % 39 % 37 % 37 % 41.4% 39.7% 39.8% 40.8%

CD Ratio 93.2 % 94.1 % 99.9 % 101.4 % 100.6 % 107.5 % 105.5 % 107.6 % 106.5 % 107.6 % 107.6 % 107.6 % 101.4 % 107.6 % 107.6 % 108.4 % Non-Interest Income/ Total Income 38.5 % 39.8 % 43.0 % 39.7 % 43.3 % 37.9 % 35.8 % 36.6 % 39.0 % 38.1 % 38.2 % 37.9 % 37.3% 39.1% 39.6% 40.4% ROA 1.8 % 1.7 % 1.7 % 1.6 % 1.6 % 1.1 % 1.4 % 1.4 % 1.4 % 1.3 % 1.5 % 1.6 % 1.6 % 1.4 % 1.5 % 1.5 % ROE 17.4 % 17.5 % 18.0 % 18.8 % 19.4 % 14.4 % 18.2 % 17.8 % 17.3 % 16.7 % 19.2 % 19.8 % 17.7 % 17.3 % 18.3 % 19.1 % Sequential Growth (%) - - - - - - - - - - - - - - - -

NII 10.3 % 4.2 % 0.2 % 14.1 % 3.0 % 8.9 % 8.1 % 1.8 % 0.8 % 8.4 % 9.4 % 5.7 %

TI 1.5% 6.5% 5.7% 8.0% 9.5% -0.6% 4.6% 3.1% 4.7% 6.9% 9.7% 5.1%

PPI 0.8 % 11.9 % 5.0 % 6.7 % 15.0 % -3.6 % 6.2 % 3.3 % 2.7 % 7.4 % 13.5 % 5.5 % Provisions and Write-offs -8 % 56 % -6 % -5 % 57 % 50 % -38 % -12 % 31 % 27 % -2 % 1 % PAT 6 % 4 % 7 % 10 % 7 % -23 % 32 % 2 % 1 % 1 % 20 % 7 % EPS 6 % 4 % 7 % 10 % 7 % -23 % 32 % 2 % 1 % 1 % 20 % 7 % Advances 6 % 6 % 15 % 19 % 5 % 12 % 3 % 1 % 4 % 5 % 5 % 5 %

Deposits 5 % 5 % 9 % 17 % 6 % 4 % 5 % -1 % 5 % 4 % 5 % 5 %

Total Business 5.5% 5.7% 11.9% 17.8% 5.9% 8.0% 4.0% -0.3% 4.5% 4.5% 5.0% 4.7% Yearly Growth (%) - - - - - - - - - - - - - - - - NII 44 % 33 % 25 % 31 % 23 % 28 % 38 % 23 % 21 % 20 % 22 % 26 % 33 % 28 % 22 % 25 % TI 33 % 34 % 32 % 23 % 33 % 24 % 23 % 17 % 12 % 21 % 27 % 29 % 30 % 24 % 22 % 24 % PPI 30 % 38 % 38 % 26 % 44 % 24 % 26 % 22 % 9 % 21 % 29 % 32 % 33 % 28 % 23 % 24 %

Provisions and Write-offs 38 % 177 % 265 % 29 % 119 % 110 % 39 % 29 % 8 % -9 % 43 % 64 % 96 % 71 % 20 % 25 %

PAT 32 % 25 % 22 % 29 % 31 % -4 % 18 % 10 % 4 % 38 % 25 % 31 % 27 % 14 % 24 % 23 % EPS 21.1% 15.1% 12.4% 19.3% 29.9% -3.8% 18.2% 10.0% 4.3% 38.5% 25.2% 31.5% 21.3% 13.0% 23.9% 23.0% Advances 32 % 35 % 46 % 54 % 53 % 61 % 44 % 22 % 20 % 13 % 15 % 20 % 54 % 22 % 20 % 26 % Deposits 23 % 23 % 30 % 41 % 42 % 41 % 36 % 15 % 14 % 13 % 13 % 20 % 41 % 15 % 20 % 25 %

Total Business 27 % 29 % 38 % 47 % 48 % 51 % 40 % 19 % 17 % 13 % 14 % 20 % 47 % 19 % 20 % 26 %



Standalone Financials

P&L (Rs mn) FY18A FY19E FY20E FY21E

Balance Sheet (Rs mn) FY18A FY19E FY20E FY21E

Particulars FY18A FY19E FY20E FY21E

Interest Income 202,674 290,835 355,452 434,805 Capital 4,606 4,606 4,606 4,606 Asset Quality

Interest Expense 125,304 191,743 234,081 283,507 Reserves and Surplus 252,977 293,448 345,376 410,108 Gross NPA (Rs mn) 26,268 50,438 57,150 64,639

Net Interest Income 77,371 99,092 121,371 151,297 Deposits 2,007,382 2,308,489 2,770,186 3,462,733 Gross NPA (%) 1.3% 2.0% 1.9% 1.7%

% Growth 33.5% 28.1% 22.5% 24.7% Borrowings 748,935 973,906 1,117,608 1,290,050 Net NPA (Rs mn) 13,127 23,616 20,399 23,926

Treasury Income 7,450 6,000 6,000 6,000 Other Liab&Provi 110,556 129,350 151,340 177,068 Net NPA (%) 0.6% 1.0% 0.7% 0.6%

Other Inc. 44,788 55,641 69,202 85,747 Total liabilities 3,124,456 3,709,800 4,389,116 5,344,565 % coverage of NPA 50.0% 53.2% 64.3% 63.0%

Total Income 129,609 160,734 196,573 243,044 Cash & Balances 114,257 124,731 147,736 180,606 Delinquencies (%) 4.9% 2.0% 2.0% 1.8%

Operating Expenses 52,128 61,431 74,523 92,228 Bal. with banks 133,086 52,518 62,205 76,045 Business Ratios

Operating Profit 77,481 99,303 122,051 150,816 Investments 684,705 868,310 990,538 1,092,474 Credit / Deposit(%) 101.4% 107.6% 107.6% 108.4%

% Growth 32.7% 28.2% 22.9% 23.6% Advances 2,035,339 2,483,113 2,979,736 3,754,467 Invest / Dep (%) 34.1% 37.6% 35.8% 31.5%

Tax 19,697 24,704 30,606 37,631 Fixed Assets 7,608 9,248 11,241 13,663 CASA (%) 36.5% 34.0% 35.5% 36.5%

Total Provisions 15,538 26,643 32,032 40,137 Other Assets 149,460 171,880 197,661 227,311 RoaA (%) 1.6% 1.4% 1.5% 1.5%

Net Profit 42,246 47,956 59,412 73,048

Total assets 3,124,456 3,709,800 4,389,116 5,344,565 RoE (%) 17.7% 17.3% 18.3% 19.1%

% Growth 26.9% 13.5% 23.9% 23.0% % Growth 45.3% 18.7% 18.3% 21.8% Adj. ROE (%) 18.7% 18.5% 19.7% 20.3%

Adj Profit 42,246 47,956 59,412 73,048 Key assumptions CAR

Earnings Ratios Deposits RWA (Rs. mn) 2,553 3,115 3,738 4,710

Int Inc. / Avg.assets 7.7% 8.5% 8.8% 8.9% Avg deposit growth (%) 40.5% 15.0% 20.0% 25.0%

Tier I (%) 13.2% 12.1% 11.5% 10.5%

Int Exp./ Avg. assets 4.8% 5.6% 5.8% 5.8% Avg cost of deposits 5.5% 6.7% 7.0% 7.0%

Tier II (%) 5.2% 4.2% 3.5% 2.8%

NIM (%) 3.2% 3.2% 3.3% 3.4% Advances Total CAR (%) 18.4% 16.4% 15.0% 13.3%

Int. exp/ Int earned 61.8% 65.9% 65.9% 65.2% Avg. advances growth 53.9% 22.0% 20.0% 26.0% Per Share Data

Oth. Inc./ Tot. Inc. 40.3% 38.3% 38.3% 37.7% Avg yield on advances 9.2% 10.1% 10.3% 10.4% BVPS 111.4 129.4 152.0 180.1

Staff exp/Tot Opex 42.0% 39.9% 38.2% 37.6% Investments Adj. BVPS, Rs. 105.7 119.2 143.1 169.7

Cost/ Income Ratio 40.2% 38.2% 37.9% 37.9% Avg. invest grow (%) 36.9% 26.8% 14.1% 10.3% Price/ Adj. BVPS 1.9 1.7 1.4 1.2

Prov./ Oper Profit 20.1% 26.8% 26.2% 26.6%

Avg. YoI(%) 7.0% 7.2% 7.3% 7.4%

EPS, Rs. 18.4 20.8 25.8 31.7

Tot prov./Avg. loans 0.9% 1.2% 1.2% 1.2%

Dividend Yield 1.4% 1.4% 1.4% 1.5%

P/E Ratio 10.8 9.5 7.7 6.3

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Historical StandaloneFinancials

P&L (Rs mn) FY15A FY16A FY17A FY18A

Balance Sheet (Rs mn) FY15A FY16A FY17A FY18A

Particulars FY15A FY16A FY17A FY18A

Interest Income 115,720 135,334 164,246 202,674 Capital 4,177 4,205 4,565 4,606 Asset Quality

Interest Expense 80,842 89,667 106,273 125,304 Reserves and Surplus 112,623 133,661 215,976 252,977 Gross NPA (Rs mn) 3,134 7,490 20,186 26,268

Net Interest Income 34,878 45,667 57,973 77,371 Deposits 911,759 1,117,195 1,428,739 2,007,382 Gross NPA (%) 0.4% 0.8% 1.5% 1.3%

% Growth 28.4% 30.9% 26.9% 33.5% Borrowings 262,204 316,590 386,067 748,935 Net NPA (Rs mn) 877 2,845 10,723 13,127

Treasury Income 751 2,431 8,132 7,450 Other Liabilities 70,942 80,983 115,253 110,556 Net NPA (%) 0.1% 0.3% 0.8% 0.6%

Other Inc. 19,714 24,691 33,436 44,788 Total liabilities 1,361,704 1,652,634 2,150,599 3,124,456 % coverage of NPA 72.0% 62.0% 46.9% 50.0%

Total Income 55,343 72,789 99,541 129,609 Cash Balance with RBI 52,407 57,762 69,521 114,257 Delinquencies (%) 0.6% 1.0% 2.3% 4.9%

Operating Expenses 22,847 29,764 41,165 52,128 Bal. with bank 23,165 24,423 125,974 133,086 Business Ratios Operating Profit 32,496 43,025 58,375 77,481 Investments 432,285 488,385 500,318 684,705 Credit / Deposit(%) 82.9% 87.9% 92.6% 101.4%

% Growth 20.9% 32.4% 35.7% 32.7% Advances 755,498 982,099 1,322,627 2,035,339 Invest / Dep (%) 47.4% 43.7% 35.0% 34.1%

Tax 9,047 12,268 17,140 19,697 Fixed Assets 3,190 4,707 6,835 7,608 CASA (%) 23.1% 28.1% 36.3% 36.5%

Total Provisions 3,395 5,363 7,934 15,538 Other Assets 95,160 95,259 125,325 149,460 RoaA (%) 1.6% 1.7% 1.8% 1.6%

Net Profit 20,054 25,394 33,301 42,246 Total assets 1,361,704 1,652,634 2,150,599 3,124,456 RoE (%) 21.3% 19.9% 18.6% 17.7%

% Growth 24.0% 26.6% 31.1% 26.9% % Growth 24.9% 21.4% 30.1% 45.3% Adjusted RoE (%) 21.5% 20.3% 19.4% 18.7%

Adj Profit 20,054 25,394 33,301 42,246 Key assumptions CAR

Earnings Ratios Deposits RWA (Rs. mn) 1,034 1,329 1,863 2,553

IntInc/Avg. assets 9.4% 9.0% 8.6% 7.7%

Avg deposit growth 22.9% 22.5% 27.9% 40.5%

Tier I (%) 11.5% 10.7% 13.3% 13.2%

IntExp/Avg assets 6.6% 5.9% 5.6% 4.8% Avg cost of deposits 7.9% 7.1% 6.4% 5.5% Tier II (%) 4.1% 5.8% 3.7% 5.2%

NIM 3.2 % 3.4 % 3.4 % 3.2 % Advances Total CAR (%) 15.6% 16.5% 17.0% 18.4%

Int. exp/Int earning 69.9% 66.3% 64.7% 61.8% Avgadv growth (%) 35.8% 30.0% 34.7% 53.9%

Per Share Data

OthInc/Tot. Inc. 37.0% 37.3% 41.8% 40.3% Avg yield on adv (%) 12.2% 11.2% 10.6% 9.2% BVPS, Rs 55.8 65.3 96.4 111.4

Staff exp/Total exp 24.3% 24.6% 25.4% 23.5% Investments Adj. BVPS, Rs. 55.3 64.0 91.7 105.7

Cost/Inc Ratio 41.3% 40.9% 41.4% 40.2% Avg invest growth (%) 5.6% 13.0% 2.4% 36.9% Price/ ABV 3.6 3.1 2.2 1.9

Prov/Op Profit 10.4% 12.5% 13.6% 20.1%

Avg yield on invest (%) 8.0% 7.6% 7.7% 7.0%

EPS, Rs. 10.3 12.1 15.2 18.4

Total prov/Avg. loan 0.5% 0.6% 0.7% 0.9%

Dividend Yield 0.9% 1.0% 1.2% 1.4%

P/E Ratio 19.2 16.4 13.1 10.8



Equirus Securities

Research Analysts Sector/Industry Email

Equity Sales E-mail

Abhishek Shindadkar IT Services [email protected] 91-22-43320643 Vishad Turakhia [email protected] 91-22-43320633

Ashutosh Tiwari Auto, Metals & Mining [email protected] 91-79-61909517 Subham Sinha [email protected] 91-22-43320631

Bharat Celly Healthcare [email protected] 91-79-61909524 Viral Desai [email protected] 91-22-43320635

Depesh Kashyap Mid-Caps [email protected] 91-22-43320671 Viraj Mehta [email protected] 91-22-43320634

Dhaval Dama FMCG, Mid-Caps [email protected] 91-79-61909518 Ruchi Bhadra [email protected] 91-22-43320601

Manoj Gori Consumer Durables [email protected] 91-79-61909523 Cash Dealing Room E-mail

Maulik Patel Oil and Gas [email protected] 91-79-61909519 Ashish Shah [email protected] 91-22-43320662

Pranav Mehta Building Materials [email protected] 91-79-61909514 IleshSavla [email protected] 91-22-43320666

Praful Bohra Healthcare [email protected] 91-22-43320611 Manoj Kejriwal [email protected] 91-22-43320663

Rohan Mandora Banking & Financial Services [email protected] 91-79-61909529 Dharmesh Mehta [email protected] 91-22-43320661

Associates E-mail Sarit Sanyal [email protected] 91-22-43320666

Ankit Choudhary [email protected] 91-79-61909533 Vikram Patil [email protected] 91-22-43320677

Dhairya Dhruv [email protected] 91-79-61909528 Gaurav Mehta [email protected] 91-22-43320680

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Meet Chande [email protected] 91-79-61909513 Jay Soni [email protected] 91-79-61909561

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Prateeksha Malpani [email protected] 91-79-61909532 MahdokhtBharda [email protected] 91-22-43320647

Ronak Soni [email protected] 91-79-61909525 Quant Analyst

Rushabh Shah [email protected] 91-79-61909520 Kruti Shah [email protected] 91-22-43320632

Shreepal Doshi [email protected] 91-79-61909541 F&O Dealing Room

Varun Baxi [email protected] 91-79-61909527 Kunal Dand [email protected] 91-22-43320678

Vikas Jain [email protected] 91-79-61909531 Dhananjay Tiwari [email protected] 91-22-43320668

Mukesh Jain [email protected] 91-22-43320667

Rating & Coverage Definitions: Absolute Rating • LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap >Rs 5 billion and ATR >= 20% for rest of the companies • ADD: ATR >= 5% but less than Ke over investment horizon • REDUCE: ATR >= negative 10% but <5% over investment horizon • SHORT: ATR < negative 10% over investment horizon Relative Rating • OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon • BENCHMARK: likely to perform in line with the benchmark • UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon Investment Horizon Investment Horizon is set at a minimum 3 months to maximum 18 months with target date falling on last day of a calendar quarter. Lite vs. Regular Coverage vs. Spot Coverage We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally, we would have access to the company and we would maintain detailed financial model for Regular coverage companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion.

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I, Rohan Mandora/Shreepal Doshi, author to this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their

securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures

Equirus Securities Private Limited (ESPL) having Corporate Identification Number U65993MH2007PTC176044 is registered in India with Securities and Exchange Board of India (SEBI) as a trading member on the

Capital Market (Reg. No. INB231301731), Futures & Options Segment (Reg. No.INF231301731) of the National Stock Exchange of India Ltd. (NSE) and on Cash Segment (Reg. No.INB011301737) of Bombay Stock

Exchange Limited (BSE).ESPL is also registered with SEBI as Research Analyst under SEBI (Research Analyst) Regulations, 2014 (Reg. No. INH000001154), as a Portfolio Manager under SEBI (Portfolio Managers

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authority against ESPL. ESPL is a subsidiary of Equirus Capital Pvt. Ltd. (ECPL) which is registered with SEBI as Category I Merchant Banker and provides investment banking services including but not limited to

merchant banking services, private equity, mergers & acquisitions and structured finance.

As ESPL and its associates are engaged in various financial services business, it might have: - (a) received compensation (except in connection with the preparation of this report) from the subject company for

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information contained herein. While we would endeavour to update the information herein on reasonable basis, ESPL and its affiliates, their directors and employees are under no obligation to update or keep the

information current. Also there may be regulatory, compliance, or other reasons that may prevent ESPL and its group companies from doing so. This document is prepared for assistance only and is not intended

to be and must not alone be taken as the basis for an investment decision. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an

investment in the securities of companies referred to in this document including the merits and risks involved. This document is intended for general circulation and does not take into account the specific

investment objectives, financial situation or particular needs of any particular person. ESPL and its group companies, employees, directors and agents accept no liability, and disclaim all responsibility, for the

consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. ESPL/its affiliates do and seek to do business with

companies covered in its research report. Thus, investors should be aware that the firm may have conflict of interest.



A graph of daily closing prices of securities is available at http://www.nseindia.com/ChartApp/install/charts/mainpage.jsp and www.bseindia.com (Choose a company from the list on the browser and select the

“three years” period in the price chart).

Disclosure of Interest statement for the subject Company Yes/No If Yes, nature of such interest

Research Analyst’ or Relatives’ financial interest No

Research Analyst’ or Relatives’ actual/beneficial ownership of 1% or more No

Research Analyst’ or Relatives’ material conflict of interest No

Disclaimer for U.S. Persons

Equirus Securities Private Limited (ESPL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition ESPL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by ESPL, including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., ESPL has entered into a chaperoning agreement with a U.S. registered broker-dealer name called Xtellus Capital Partners, Inc, (''XTELLUS'). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules. The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, XTELLUS, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.

yes bank absolute : relative :overweight long 2qfy19 result: … · 2018. 10. 31. · yes bank...

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