Yes Ban looking to raise 12,000 Crores by September 2020

Medium sized new generation bank Yes Bank has announced that it is looking to raise 10 to 12,000 Crores through various fund raising plans such as Rights Issue, Qualified Institutional Placement or follow on public offer.

The Bank has to raise minimum 4,000 Cores to meet the regulatory requirement this year.

Meanwhile Yes Bank declared its Q 4 results which showed a profit of more than 2,600 Cores which is very much healthy sign for the days to come for this bank.

We had already initiated a buy call on this bank. People looking for multibagger returns in coming 2 to 3 Years should buy the Yes Bank stock now trading at Rs 27.

The stock is available at very very cheap price due saga of events which has happened in recent pasts but bank is having strong fundamentals and good retail base of clients as well as state of art technological investments which makes is way much ahead than any other banks of our country especially public sector banks.

ED Chargesheets Rana Kapoor & Family in Yes Bank Case

The Enforcement Directorate ( ED ) has filed its first charge sheet in the Yes Bank money laundering case . It has named its founder and former chief executive Mr. Rana Kapoor , his wife and three daughters of family for receiving around 600 Crores of India Rupees kickback in for favouring the questionable loans.

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.

HDFC Bank Q4 Profit up 17% INR 6,927 Crores

India's Largest Bank by Market Capitalisation the bellwether HDFC Bank has reported better than expected result for the quarter ended March 2020.

Net Profit is up by 17% to the levels of Rs. 6,927/- Crores whereas for the complete year 2019 -2020 the total profit is at mind boggling 26,257/- Crores which itself is higher than 24% for the previous financial year 2019 which was 21,078 Crores.

The Bank informed that there will not be any divided decleration as per RBI directive due to Covid 19 pandemic situation.

The total deposit of the bank stands at 11.47 Lakh Crores where as the loans outstanding at 9.93 Lakh Crores.

The NPA declined to the levels of 1.26% from the previous year figure of 1.36%.

The result should be seen as an eye opener for the Public Sector Banks of our country which are running in losses and draining out the tax payers money. It should be noted that the Market Capitalisation of HDFC Banks stands much higher than that of all the Public sector banks market cap taken together.

The shares of HDFC Bank closed on Friday 17th April 2020 at Rs 910 up by 3% from the previous day close.

What should investors do now with HDFC Bank shares ?

Our team recommends a buy in the stock of HDFC Ban with the target of 1200 by June end and our year end targets stands at 1500/- The non decleration of dividend will result in price increase of the stock as after the removal of ban by Reserve Bank of India they should be giving very high divided in the year 2021 may be around Rs 50 per share according to our estimates.

Buy Dhanlaxmi Bank, huge upside ahead target 105

Investors as well as positional traders should start making position in Dhanlaxmi bank at current cmp of 70. There is strong news that it is likely to be one of the bank to be acquired by a leading NBFC. Already there is rumours that one of the NBFC of largest consturction company is buying the shares from open market,

Hence buy for the target to cross 100 and if open offer comes you may see the level of 125 plus.