Religare Capital has reiterated 'Buy' on Yes Bank with target price of Rs 1,075 in its report.

Commenting on the investment rationale, the stock broker said ''YES' share price has corrected ~35% from its Mar'15 peak and offers an attractive buying opportunity at current levels (1.7x FY17E Price to book value ratio (PBV).

Concerns over asset quality and forex borrowings are overblown, as we do not anticipate any negative surprises on NPA or credit costs. The bank has an adequate swap structure in place to cover mark-to- market (MTM) losses on forex borrowings.

We expect margins to remain well protected at current levels and loan growth to stay much ahead of peers. Reiterate Buy on the stock with a Sep'16 TP of Rs 1,075.

YES remains one of our top picks in the sector. The bank is planning to raise USD 1 billion through the ADR route by the end of FY16 or early FY17 for growth needs. This is likely to add ~Rs 70 to book value in FY17 (not factored into our estimates).''

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