EUR 120.00 For Business Accounts Only

MOSL: Morning India (14/February/19)-1. Yes Bank (Yes!! NIL divergence); 2. Hindustan Unilever; 3. Oil & Gas; 4. Bosch; 5. Container Corp; 6. Bharat Forge; 7. Ipca Labs; 8. Repco Home Fin

MOrning India (14/February/19): 1. Yes Bank (Yes!! NIL divergence); 2. Hindustan Unilever; 3. Oil & Gas; 4. Bosch; 5. Container Corp; 6. Bharat Forge; 7. Ipca Labs; 8. Repco Home Fin

 

Today’s top research idea

Yes Bank: Yes!! NIL divergence; Key overhang addressed, worst appears to be behind

• Yes Bank (YES) appears to have made a compelling statement to the market, to the investors and in particular to all its skeptics about its compliance practices in reporting bad loans.
• The Reserve Bank of India (RBI) has found 'nil' divergence in the asset classification and provisioning by YES for FY18. Importantly, this development comes after months of speculation on the magnitude of divergence that the bank was expected to report (the range was as high as the balance sheet size of some of the smaller banks), particularly after its MD & CEO was forced to step down by the RBI.
• Clarity in this regard will thus help the bank to clear air on one of the key overhangs and start a fresh journey under the new MD & CEO, who has to join office before 1st Mar'19.

Piping hot news

RBI clears Yes Bank of divergence

• The Reserve Bank of India (RBI) has cleared Yes Bank of any disparity in reporting bad loans, known as divergence in market parlance, the private-sector lender said late evening Wednesday. “The report observes NIL divergences in the bank’s asset classification and provisioning from the RBI norms,” the Mumbai-based lender said in a statement to the stock exchanges, citing the central bank’s risk assessment.