Government limits withdrawals at YES Bank to Rs 50,000: Here's what brokerages have to say

SUMMARY

The government has effected moratorium on YES Bank from March 5 to April 3 on the recommendation of Reserve Bank of India (RBI). The RBI has also superseded the board of YES Bank with immediate effect and has appointed former SBI chief financial officer Prashant Kumar as administrator for YES Bank. Here's what the top brokerages make of the situation:

By CNBC-TV18Mar 6, 2020 9:11:06 AM IST (Published)

JPMorgan on Yes Bank: The brokerage has an 'underweight' rating on the stock and cut its target to Re 1 from Rs 55 earlier. It believes that the rally in the stock is unjustified.

Macquarie on Yes Bank: The brokerage has an 'underperform' rating on the stock with a target at 25 per share. It expects a sharp downturn move in the stocks, especially for SBI and Yes Bank.

UBS on Yes Bank: The brokerage maintains a 'sell' call on the stock with a target at Rs 20 per share.

Kotak on SBI: The brokerage has a 'buy' call on the stock with a target at Rs 420 per share. It believes SBI is the best proxy to invest in the corporate NPL recovery theme.