Yes Bank remains one of our best bet in the sector, we recommend a BUY rating on the stock with the TP of Rs 424. IT is likely to be one the key beneficiaries of economic revival.
We anticipate strong asset growth going forward – advances to grow at 30% CAGR over the next 2 yrs. Progress on retail assets/liabilities of the bank is also happening at much faster pace.
Retail piece is likely to make the balance sheet and earnings of the bank more granular, stable and less volatile leading to improvement in the valuation multiples.