The loans given to several firms including DHFL Indiabulls group became sore of the eye for media and central bureau as the companies to whom loans were sanctioned started to default on their payments.
Analysis :
We have to accept this fact that the technology and innovation which Yes Bank brought to Indian banking industry is really appreciable and world class. All the mobile application based loans companies are using the Cash Management Services of Yes Bank only , and on the larger front the home grown giant cab aggregator OlA cabs along with other several companies involved in payment , collection & reconciliations are using the services of Yes Bank only.
Yes Bank and Kotak bank were the two banks in 2002 which got licence from Reserve Bank of India and both of them got listed on the bourse and given multifarious returns to its shareholders and investors.
It the sheer failure of government central bank and several other government affiliated agencies which are always known for their waking up after the events happened for not noticing the fallacies in the banks balance sheet and loss of internal control.but as always the blame was put the man who owned and made the Bank to rise to a good respectable and reputable level.
Should you invest in Yes Bank shares now ?
Our first answer is Yes to Yes Bank shares now.The stock is trading at Rs 28 on Bombay Stock Exchange at closing hours today.
Its like a gold mine share now , with balance sheet getting cleared from the previous glitches in a quarter or two and strong presence of now default retail loans will push the profitablity of bank to very good levels.
The stock is available at very very cheap levels as compared to state of art failed public sector banks of our country which are still trading at very high valuations and always given loss to their investors and share holders.
Buy the share of yes bank for target of 60 by December and if you have holding period of 3 years then you will definitely see the levels of 500 very easily.
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