Yes bank

Caveat upfront: Have Never been interested and never looked at the bank before.

But is it now worth looking into.

My query pertains to issue of bad loans and the past shady dealings. Is it cleaned up completely Post the JC Flower Bad Loans deal.

Or are there some cockroaches still roaming underneath.

The nudge for looking into this with a fresh eye is the news item today on moneycontrol today.

Race for Yes Bank: Japan’s MUFG, SMBC weigh majority stake buyout in lender (msn.com)

This is further to HDFC MF or HDFC Life getting approval though the HDFC Bank to invest upto 9.5% of Yes Bank. Yes Bank shares jump 23% in two days after RBI allows HDFC Bank to pick 9.5% stake – The Economic Times (indiatimes.com)

We should have confirmation if they indeed bought stake in next few months.

While I don’t trust the financials, it does look tempting at PB < 2.0.

Questions to be asked here first and foremost are.

1. Are the books clean now
2. Are growth drivers in place
3. Management SWOT.

Would love feedback here from others.