Motilal Oswal
    NIFTY 50
Motilal Oswal
February 14, 2019 10:28 AM | Finance

RBI report on Yes Bank is a confidence booster for investors, says SBICAP Securities

The news that the Reserve Bank of India's audit report has not found any divergence in Yes Bank's asset classification is a confidence booster for the investors, said Krishnan ASV, lead analyst (BFSI), SBICAP Securities. This takes Yes Bank one step closer to regaining regulatory credibility and regulatory confidence, he added. The brokerage has a "buy" rating on the stock with a target price of Rs 315.

"The next stop would be growth capital because they are operating on a very thin capitalization ratio. So, at some point in time with the new MD joining, growth capital will need to be addressed, said Krishnan. Once, this happens the visibility will improve and rerating will be sharper, he added. However, our base case does not build in any equity raise right away," he said.
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