MARKET EYE-JP Morgan starts Yes Bank with overweight

JP Morgan has started coverage on YES Bank with an 'overweight' rating and a price target of 350 rupees. It expects the bank will be able to deliver a loan growth of 35 percent per annum due to its small base and its focus on wholesale lending. The bank is also expected to sustain its supernormal return on assets at nearly 1.5 percent, the brokerage said in a note. The return on assets will be driven by fees from investment banking and debt syndication, transaction banking and selling third-party products such as insurance and mutual funds, it added. At 2:42 p.m., the stock was down 2.3 percent at 268.50 rupees. Reuters Messaging:sowmya.kamath.reuters.com@reuters.net