Start your answer with either "YES" or "NO", if applicable, to be followed by your legal reason/s

A check for FIFTY THOUSAND PESOS was drawn against Banco De Oro Universal Bank (BDO) and made payable to Naguiba Sales and Marketing or order. The check was deposited with payee's account at Bank of the Philippine Islands which then sent the check for clearing to Banco de Oro Universal Bank. BDO refused to honor the check on the ground that the serial number thereof has been altered. Naguiba Sales and Marketing sued BDO. In the said suit, BDO contented that Naguiba Sales and Marketing as payee could not sue the drawee bank as there was no privity between them. BDO theorized that there was no basis to make it liable for the check.

Is the contention of BDO correct? Explain with legal reasons.