Can Yes Bank Make a Comeback- Stock Up By 12% In a Month

Yes Bank Ltd. is an Indian Private Sector Bank founded in 2005, It has a network of 1198 branches,193 BCBOs and 1287 ATMs. The Bank recently reported strong Q4 FY 2023-23 results with a solid jump of 123% in Net Profits on YoY Basis. The stock jumped 5% today after reporting its earnings and it is up by 12% in the past month.

Strong Q4 FY 2023-24 Results

For the Q4 FY 2023-24, Yes Bank reported a net profit jump of 123% YoY to Rs.452 crore as against Rs.202 crores reported in Q4 FY 2022-23. The Net Interest Income (NII) for the Bank stood at Rs.2153 crores a rise of 2% from Rs.2105 crores reported in Q4 FY 2022-23. While Net Interest Margins for the lender stood at 2.4%. Net Interest Margins is a key profitability indicator for banks.

The bank’s asset quality showed significant improvement, with the Gross Non-Performing Asset (GNPA) ratio dropping from 2.2% to 1.7% in Q4 FY 2023-24 and the Net Non-Performing Asset (NNPA) ratio to 0.6% to Rs 1,329.73 crore. The provision coverage ratio remained strong at 79.3%.

Company CEO After Results

After achieving strong Q4 FY 2023-24 results, Prashant Kumar, MD and CEO of Yes Bank said that, “This quarter demonstrates a significant step in the RoA expansion journey, with Q4 FY 2023-24 RoA expanding to 0.5% This is despite the one-off gains from tax refunds, SR recoveries and ARC Sale, being prudent utilised for strengthening the Asset Quality metrics like, the NNPA and Net Carrying value of SRs have more than halved over the course of the year to 1.1% from 2.4% in FY23.”

Stock Performance After Results

After announcing its earnings, Yes Bank’s stock surged by 5% on April 29, currently trading at Rs. 27.5 per share. Over the past month, the stock delivered a return of 12.2%, outperforming the Nifty50 Index, which gained only 0.5% during the same period. The stock has risen over 70% from its 52-week low and reached a 52-week high of Rs. 32.85.

Conclusion 

The Bank has reported robust net profits for the Q4 FY 2023-24, The asset quality has been improved in the quarter and T Net interest Margins were slighter higher for this quarter on a YoY Basis. The net advances also rose 13.7% to Rs.2.28 lakh crore which was driven by sustained growth momentum in SME advances. The market positively reacted to the Q4  results and investors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.