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Published on : Jul 14, 2015

YES Bank has been irked by a report released by broking firm UBS which paints a negative picture about the bank’s finances. The fifth-largest bank in India has approached the market regulator SEBI to probe the intentions of the analysts at UBS who had made the report. The bank has blamed the analysts for not revealing their interests before publishing the report. Further, the bank has complained that the report is based on information gathered from the Registrar of Companies and the broking firm had not contacted YES Bank regarding the data mentioned in the report.

According to a spokesperson of the bank, the report, titled “India Banking and Financial Sector”, has distorted the figures related to the estimated earnings of the bank and has sharply reduced the earnings estimate of the bank by 15% in financial year 2016, and by 16% in financial year 2017. The report has claimed that the bank is vulnerable to large corporate defaults. The report has decreased the target price of the bank to Rs 740 from its earlier valuation at Rs 1000. This has affected the share price of YES Bank which dipped by 8% to Rs 792 after the markets closed on 13th July.  

The bank has pointed to SEBI that the report is highly biased and has questioned the involvement of the analysts in actively abetting short sell of the bank’s shares. UBS has declined to comment on the matter. It has, however, mentioned that the firm is committed to produce quality research and complies with all laws and regulations in the jurisdiction of its operations.