Amid a lot of uncertainties related to the search of new MD & CEO, Yes bank
(YES) delivered below estimate numbers for Q3FY2019, with PAT down by 7% yoy.
On the operating front, the bank reported 41% yoy growth in NII led by robust
loan growth and steady NIMs. Other important updates are (1) RBI approved the
appointment of Mr Ravneet Gill as MD & CEO; (2) A board meeting is scheduled
on January 29, 2019 to finalize the interim transition.

Outlook & Valuation: With induction of Mr Ranveet Gill, management overhang is
behind, however, re-rating from hereon will depend on clarity regarding strategy
of future business and capital raising plans. At CMP, YES trades at 1.55x FY20E
P/ABV, which we believe is strong credential of new DM and superior RoE, hence,
we recommend BUY with a Target Price of `280 over the next 12 months.

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