Buy YES Bank Ltd., target Rs 1590.0 : Bank of America Merrill Lynch

Bank of America Merrill Lynch has Buy call on YES Bank Ltd. with a target price of Rs 1590.0. The current market price of YES Bank Ltd. is 1339.0. Time period given by analyst is year, when YES Bank Ltd. price can reach defined target. ICICI Bank reported 4Q16 net profit of Rs7bn, down 76% as the bank created an Rs 36 bn contingency reserve. Adjusting for that, its profit would be Rs37.8bn, up 29% yoy, ~12% higher than estimates. Moreover, slippages at Rs70 bn too were lower than expected. On the operational front, topline growth was weak at 6% y/y owing to 20bps margin decline y/y due to loss of interest arising from the high NPL accretion. But retail loan growth remained strong at 23% with total loan growth at 12%. CASA is at 46%. Tier I at +13%.