YES Bank ends 2% up post Q2 earnings; SBICAP rates 'buy'

Shares of YES Bank surged over 2 per cent in trade on Thursday after the company posted a 26.3 per cent year-on-year increase in net profit at Rs 610 crore, driven by healthy NII and other income growth, in the second quarter ended September 30.

The fifth largest private sector bank had reported Rs 483 crore net profit in the corresponding period of last fiscal year.

The stock settled at Rs 743.40, up 1.95 per cent after hitting an intraday high of Rs 746.90, up 2.41 per cent on the Bombay Stock Exchange (BSE).

To the relief of markets, the company has not sold assets to ARCs for the last 4 quarters. Its net interest margins remained unchanged at 3.3 per cent year-on-year.

"At Rs 720, the stock trades at 9.7x F17e EPS (Rs 74.5) and 1.9x F17eBV (Rs 380). Our present recommendation is BUY with a target of Rs 970," said brokerage firm SBICAP Securities.

The bank's total Income increased from Rs. 3337.97 crore for the quarter ended September 30, 2014 to Rs. 3995.34 crore for the quarter ended September 30, 2015, the bank said in a BSE filing.

The banks' gross non-performing assets were at 0.61 per cent quarter-to-quarter as compared to 0.46 per cent in Q1 in FY16.