YES BANK-SAY YES TO THIS

This recently started private sector bank has been promoted by Shri.Ashok and Rana Kapoor.The Bank has no legacy systems (no past baggage!) so it created a totally differentiated model in the Banking Industry.The bank has focussed on fee based business and in sunrise sectors or sectors with least banking penetration like Food & Agriculture,Retail and private wealth management solution where it is bringing in significant expertise to build viable income streams for itself.The bank has started with cutting edge technology platforms which will deliver excellent service to its customers and also in a way negate the lack of a huge physical branch network to bring in more business.

Within an year of operations it has been ranked 105th most private sector company and the 7th most valuable bank in India by Business today.The Management Vision is to build one of the "World's Best Quality Bank in India".With a Solid Management team that is available with the bank the company is surely on its way to achieve its ambition.

For the year ended March 07 the bank is expected to post a eps of Rs.2.5-Rs.3 which on the current price of Rs.100 gives a P/E of 30-35.This may look expensive however the bank is growing on a small base so growth rates of 30% plus in the next two years is easily achievable.

Buy on all declines with a holding period of 3-5 years.Expected return 25-30% CAGR(compounded annually).