I have been hearing this and believing this ever since I started looking into markets in 2010…only to see Hdfc bank grow and grow…and my other picks in financials either remain stagnant or degrow over long term…if something bad happens to Hdfc it will be an eye opener for the entire world, that is if at all that happens…i wonder what would those lucky people doing who are holding Hdfc bank since a decade or two…are they selling for the fear of it being after all a bank and financial institution is prone to huge risks or they have full confidence in the integrity of this institution for more decades…Yes bank being a good but at 150 odd I have no clue…but looks like being a normal retail investor of india with limited insights and resources I might take the plunge if it hits 150 this time…
Yes bank has exposure in DHFL ~ 15% of its Net worth…
DHFL liquidity is okay for nowhttps://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Dewan_Housing_Finance_Corporation_Limited_February_02_2019_RR.html
But How long they can sustain ?
Any idea about the today’s call details
what is the source of this ?
Can someone share summary of the article. Its only for premium users
Divergence in Asset Classification and Provisioning for position as on March 31, 2018
Mumbai, February 13, 2019:
The Reserve Bank of India (RBI) assesses compliance by Banks with
extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part
of its supervisory processes. As part of this process, YES Bank has received the Risk Assessment
Report for FY2018.
The report observes NIL divergences in the Bank’s asset classification and provisioning from the RBI
Isnt it too old report (Mar 2018) to publish now… or RBI took a year to analyze but in anycase stock will react positively, good for stock…
Looks like Yes Bank has found its Yes man. The market will most likely look for salt.
Needless to say, this was the biggest overhang. Q3 fy19 Book value is arnd 123/- . The valuations were depressed relative to peers mainly due to divergence fears.
Hopefully now they can raise capital at decent valuations given they have debt to equity ratio on the higher side.
I keep it off my watchlist as long as people who are responsible for the pain are still around. I might be wrong but for any meaningful and sustainable recovery, RK and his cronies need to be shown the door. I am not playing the bounce trade either.
Now request fellow boarders to not start doubting the RBI report itself and pull a Kejriwal!
Is there a way to read the RBI report?
I wonder what made you ask me the question along with the people you have asked. I am a newbie investor, yet to contribute meaningfully to this forum.
Regarding your query, this is beyond my knowledge to make any kind of comment. This could be construed as a positive sign, one that could bring back some of the lost trust or the story may unfold more and will not be wrapped up soon, there could be more cockroaches. Too soon to react either way. For now, I am on the fence. As I am already invested, I will remain invested as it is not a small-cap (my losses until now are in small-caps). If it turns out to be an improving scenario, I would buy more or this may very well become my first substantial loss in a large-cap.
You forgot to ask @Yogesh_s
YB is a very well entranched name. Good customer service… technologically advanced…(even PhonePe gives @ybl upi ids only for any of the 50 banks one attaches) Casa growth to be more than the avg. for private banking sector.
It is possibly one of the favourites amongst people in NCR. YB ATMs at metro stations…such as Kashmiri gate, where 3 different routes meet… great visibility.
As much as this news is positive for Yes Bank investors, IMO this reflects badly on RBI’s style of functioning. By its own assessment, Yes bank has NIL divergences and still its CEO is fired. Its true that Yes Bank had large divergences in FY 17 but that was the first year RBI published the report and even other banks had large divergences.
Its a surprise to me why it takes 10 months to publish this report after end of the financial year. RBI publishes other reports on the banking industry which are essentially aggregate data of all banks. I don’t understand how RBI can prepare aggregate data before releasing report on individual banks.
Its unlikely that Yes Bank got its act together after its CEO is fired as he was fired in Sept 2018 and this report is for FY 18 that ended in March 2018. Yes bank apparently corrected its NPA recognition norms in FY 18 itself going by this assessment. RBI should have waited for the report to come out before making a decision on CEO term.
Does this report mean all that the bank is saying about divergences and quality of its book can be taken at face value? That is for the market to decide.
As you very well know, things are definitely not this simple. Divergence news, demand of CEO to leave, stock plummets, CEO is gone, clean-chit is given, stock sees its past glory. I don’t think so. Falls are free, risings are a few quarters.
Do post more as and when something emerges, many concerned souls in here.
Edited as community felt it wrong.