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Credibility issues at Yes Bank can be overcome by a very strong CEO, says Kim Eng Sec India

Updated : November 16, 2018 13:27:28 IST

Kim Eng Sec India on Friday said credibility issues at Yes Bank can be overcome by a very strong chief executive officer (CEO), after

Ashok Chawla, chairman, resigned from the lender’s board.

In an interview to CNBC-TV18's Prashant Nair and Ekta Batra, Jigar Shah, CEO, said concerns may keep increasing at Yes Bank if lender doesn't appoint a very strong leader.

Talking on Federal Bank, Shah said he is very confident about the bank as it's improving CASA (Current Account Savings Account) and loan growth, "The bank has very strong capital base and the slippages have been under control despite Kerala flood."

Further, Shah said the third quarter will probably have slightly more provision on account of the floods, but it's all as per expectations, "So there are no negative surprises, which is good. The stock is trading at a very attractive valuation compared to the past and compared to the private bank segment. If no negative surprises take place after the third quarter, the stock should get re-rated."
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