Yes Bank shares nosedived as much as 19.56 per cent on Thursday, a day after the private sector bank reported a 91 per cent fall in its profit for the April-June period. Yes Bank, which reported its earnings after market hours on Wednesday, reported a net profit of Rs 113.76 crore for the quarter ended June 30, missing analysts’ estimates, and marking a decline of 91 per cent from that of Rs 1,260.36 crore for the corresponding three-month period a year ago. Yes Bank shares – down 45.83 per cent on a year-to-date basis – moved further below the Rs 100-mark, a level they had regained on Tuesday after a gap of nearly two weeks.
Here are 10 things to know about Yes Bank share price today:
- At 11:40 am, the Yes Bank shares traded 11.63 per cent lower at Rs 87 apiece on the BSE, sharply underperforming the benchmark Sensex index which was down 0.28 at 39,106.01 amid a broad-based selloff.
- The Yes Bank stock registered a fresh 52-week low of Rs 83.70 apiece on the BSE. By late morning deals, Yes Bank shares remained the top laggard on the benchmark indexes Sensex and Nifty.
- Analysts had on an average expected Yes Bank’s net profit at Rs 279 crore for the period, news agency Reuters reported citing Refinitiv data.
- Analysts say the pain on the non-performing assets front might continue for some more time. Yes Bank reported a nearly three-fold rise in provisions for loan losses to Rs 1,784 crore in the quarter ended June 30.
- “The pain on the non-performing assets front will not end immediately as it might take the bank at least one year to come clean,” AK Prabhakar, head of research and IDBI Capital, told NDTV.
- Net interest margin – a key indicator of a bank’s profitability – slipped to 2.8 per cent in the first quarter of current financial year, from 3.3% in the corresponding quarter a year ago.
- The Yes Bank stock price is already reflective of the cleaning up which is happening, and therefore no major upside or downside is expected, added Mr Prabhakar.
- However, some analysts were of the view that the earnings miss might lead to some correction in the near term.
- “Yes Bank quarterly numbers are bad… Asset quality has also worsened and Yes bank shares can witness a bout of correction,” said Avinash Gorakshakar of Joindre Capital.
- Yes Bank shares were on course to end lower for a second straight session. As of Wednesday’s closing price, the Yes bank stock was down 9.43 per cent so far this year, and 45.83 per cent this calendar year.
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