Macquarie upgrades Yes Bank to 'outperform'

Macquarie has upgraded Yes Bank to "outperform" from "neutral" and raised its target price to Rs 415 from Rs 380, saying current levels "offers good opportunity to accumulate."

Expects falling wholesale rates, improving current account savings account (CASA) ratio to help margins, which are likely to rise from 2.8% to 3.2% in the next three years.

"Higher margins should give YES Bank a cushion against a possible credit cost rise due to asset quality issues," it said in a note.

Macquarie says the private lender has a very well-diversified portfolio with no concentration in any specific sector. Also, the quantum of restructured assets is well below that of its peers.