Yes Bank Shares Fall Nearly 20%, Here’s What Analysts Say

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Yes Bank share today: The stock registered a fresh 52-week low on the BSE

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. “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.
  6. 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.
  7. 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.
  8. However, some analysts were of the view that the earnings miss might lead to some correction in the near term.
  9. “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.
  10. 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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