SBI & YES Bank

Least NPA but with divergences of 4177crs in gross NPA's.

Anybody know the reasons why RBI thought accounts were NPA but Rana led management did not?

 

really hard to decipher whats going on, is mgmt hiding something ?. Are we going to see similar divergences from other private banks ? Who knows..

 

https://in.reuters.com/article/brief-yes-bank-says-there-is-no-carry-fo-idINFWN1IE0CQ

Says no impact, but does hurt the sentiment..

 

Yes Bank is one of the strongest young Bank of India.All corporate lenders including yes bank have some NPA issues,but it is better in comparison to all other corporate lenders .I expect this bank to continue its out performance in banking sector. Bank management has already clarified that some of accounts were sold to arc ,some accounts has bounced back and JP associated has already been recognised as NPA ,which will again become good in first quarter of this financial year after merger of cement unit with Ultra tech cement.Any way after strong run up,stock was just waiting for excuse to correct and corrections are always healthy if that don't change direction of stock or market for long term.I remain committed to this stock and will continue to have maximum exposure of my portfolio.

 

@kharb

I thought Balance sheet is AS OF a date... And should capture the state of affairs AS OF that date regardless of any subsequent positive development like sale to ARC or upgrades.

If 4147crs is loose change for YES BANK, it should have treated it as NPA, raised provisions as of 31st March 2017 and reversed it as and when the same was justified in FY 17-18

 

@starry_eyes-Any way ,almost said amount is already written off from market cap today itself ,so from market point of view NPA has been acknowledged as market are always efficient . Now market should react positively for any written back out of discussed amount as being explained by management.More over RBI report is of year 16,so management might have improved the situation in year ending 17.Any way truth is some where in middle of ,in all pvt banks ,what RBI says and what pvt banks management says.

 

@kharb

Ya ... You are the banking expert in here so can't really debate the excellent points raised by you supporting the Rana led Yes Bank management.

You must surely have some impeccable justification why this divergences weren't even raised with the analysts like how ICICI and Axis did.

Kudos to Yes management in getting the market to acknowledge the divergences ( wonder why market corrected if the position adopted by management was appropriate). Monday should see the scrip more than recovering the 6% tank the market caused.

Also didn't realise the truth too these days is relative. Maybe I miss too much about the prevalent situation and particularly in the Banking

 

Agree with you completely. Bank should have sufficient provision buffer and is well-covered on risks.
I haven't sold any and plan to add on dips. Only hope that they dont come out with such huge divergence for 2017. And I believe they should not, because by now they should know how RBI wants them to calculate for NPA's.