A little rise in YES Bank Ltd. shares occurred on Thursday in anticipation of the private lender's December 2023 earnings report. The private sector lender will announce its results for the quarter and nine months that ended on December 31, 2023, on Saturday, a market holiday. The bank said that it will host a conference call with analysts and investors on Monday, January 29, 2024 at 8:00 AM IST to discuss the financial results with the participants after the release of its results in a separate exchange filing with the bourses.
On Thursday, YES Bank's shares increased by more than 2.4%, valuing the company at approximately Rs 71,500 crore. In the prior trading session, the private lender finished at Rs 24.68. On January 16, 2024, the share reached its 52-week high of Rs 26.25, increasing more than 85% in just three months. Brokerage anticipates that YES Bank will post a great performance in the December 2023 quarter, with net profit multiplying manifold and net interest income (NIIs) and net interest margins (NIMs) witnessing a respectable growth, ahead of its earnings on Saturday. The management's remarks will be crucial as the bank turns its attention to rebuilding the company.
Since the bank's asset quality is predicted to stay stable as a result of the improvement in recoveries over the previous few quarters, we anticipate YES Bank to report strong results in Q3FY24. The SMA book's continued flattish sequential behavior might be used as additional confirmation of this, according to Research Analyst at StoxBox Shreyansh V Shah.
"The bank is progressively stepping up its efforts to fortify its retail franchise, as seen by the traction in both retail and MSME. In its Q3FY24 business reports, traction on disbursements in the retail and MSME areas was also fairly strong. We think the bank will have healthy bottom-line growth in Q3FY24 with ARCs bidding for its two NPA loan books," he stated.
Anticipating a 6% YoY growth in NII, which will mirror the underlying business growth. Although the retail and MSME industries are seeing an increase in business activity, overall loan growth is still below the industry average. According to Kotak Institutional Equities, deposit growth has considerably slowed down in recent quarters although still satisfying business requirements at 11% YoY.
In Q4FY23, recovery and upgrades should continue to pick up steam. This is primarily shown by shifts in the value of security receipts. Forecasting the impact on earnings is challenging due to the nature of provisioning policy. Rebuilding the bank's business is becoming the main priority. The discussion would center on company operations growth and a return to normal," the statement continued.
According to Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, YES Bank has recovered fairly well over the last three months from the Rs 16 zone and has maintained an uptrend with a series of higher low formations on the daily chart. The bank is currently consolidating, with near-term support at Rs 23.70 levels.
"On the upside a decisive breach above Rs 25.70 – 26 zone is much needed to confirm a breakout and thereafter can anticipate further rise with next targets of Rs 28.50 and Rs 31 levels visible," he stated.
According to Ganesh Dongre, Senior Manager, Technical Research, Anand Rathi Shares and Stock Brokers, "we have seen a fresh breakout in YES Bank around Rs 23. The stock continues to rally from Rs 19 till Rs 23."At the 23 price level, the stock has once more shown the creation of a bullish candlestick pattern. This pattern may last until Rs. 26, at which point traders can hold the stock with a stop loss of Rs. 19.
