Yes Bank share price down 5%, Morgan Stanley gives an underweight rating

Since the NPA crisis in 2020, the quality of Yes Bank's assets has increased.

According to Morgan Stanley's most recent report, the bank's two new CEOs, Ravneet Gill and Prashant Kumar

have helped fix the institution's governance framework and adequately provide for legacy stressed assets.

"Over the next few years, we anticipate a marked improvement in the cyclical environment. 

After a thorough cleaning of its books, Yes Bank should see an improvement in loan growth and margin profile as the macro recovery gathers steam.

In order to clean up its balance sheet, Yes Bank recently made a strategic decision involving

the sale of stressed assets to asset reconstruction companies (ARCs) "the Morgan Stanley report concluded.