Yes Bank has been in the news recently as investors keep a close watch on its share price performance. As of October 15, 2024, the share price of Yes Bank is ₹21.14, reflecting a slight decline from the previous day’s closing price of ₹22.42. This drop of approximately 2.50% has raised concerns among analysts and investors alike about the bank’s future performance.
Main Points
Current Price Performance
The share price of Yes Bank has shown significant fluctuations over the past year. The stock reached a 52-week high of ₹32.85 and a low of ₹15.70, indicating a volatile trading environment. Over the last week, the stock has decreased by about 3.87%, and it has seen a decline of approximately 12.21% over the past six months. Despite these challenges, the bank reported a year-on-year increase of 12.09% in its advances, which is higher than its five-year compound annual growth rate (CAGR) of 5.85%.
Target Price and Important Levels
Analysts suggest that Yes Bank’s target price could be set around ₹25 in the short term, considering its recent performance and market conditions. The important support level for Yes Bank shares is around ₹20, while resistance is anticipated at ₹23. Investors are advised to keep an eye on these levels as they could indicate potential buying or selling opportunities.
Financial Highlights
Yes Bank’s financial health shows some positive trends:
- Revenue Growth: The bank reported an annual revenue growth of 22.87%, outperforming its three-year CAGR of 11.85%.
- NPA Ratios: The gross non-performing assets (NPA) ratio has decreased to 1.73%, while the net NPA ratio stands at 0.58%, indicating improved asset quality over the past four years.
- Market Capitalization: As of now, Yes Bank’s market capitalization is approximately ₹68,500 crore.
Recent News and Developments
In recent news, Yes Bank’s CEO Prashant Kumar stated that the bank’s deposit growth will continue to outpace loan growth in FY25, which is a positive sign for investors looking for stability in returns. Additionally, there have been reports indicating that Yes Bank is focusing on improving its return on assets (ROA), which is currently low at 3.18%.
Investors should also note that Yes Bank has been actively managing its asset portfolio to improve financial metrics further. The bank’s provisioning coverage ratio has shown a decrease, which could impact future profitability if not managed carefully.
