YES Bank shares extend gains, jump 5% to hit 52-week high; mcap nears Rs 70,000 cr

Shares of YES Bank Ltd continued to rally further on Friday as the private lender rose another 5 per cent during the trading session to hit a new 52-week high. The stock topped Rs 24-mark during the trading session amid heavy trading volumes on the exchanges.

Before giving up its gains partially, shares of YES Bank rose about 4.51 per cent on Friday to Rs 24.30, hitting its 52-week high, commanding a total market capitalization of close to Rs 70,000 crore. The scrip had settled at Rs 23.25 in the previous trading session on Thursday.

yesbank-share-price-364072?utm_source=topic&utm_medium=topic&utm_campaign=topic">YES Bank shares have gained more than 72 per cent from its 52-week low at Rs 14.10 hit in October 2023. The stock has gained about 22 per cent in the last one month, while the stock has rallied 40 per cent in the last six months period. The private lender has posted double digit gains in the last one year period.

Earlier this week, YES Bank shared its Q3 business updates, where in it reported a YoY increase of 11.9 per cent in loans and advances in the December 2023 quarter, reaching Rs 2,17,662 crore, compared to Rs 1,94,573 crore in the same quarter of the previous year. On a quarter-on-quarter (QoQ) basis, the loans and advances rose by 4.1% from Rs 2,09,106 crore.

Deposits for the quarter increased by 13.2 per cent YoY and 3.2 per cent QoQ, reaching Rs 2,41,831 crore compared to Rs 2,13,608 crore in Q3FY23 and Rs 2,34,360 crore in Q2FY24. The credit-to-deposit ratio decreased to 90 per cent as of December 31, 2023, compared to 91.1 per cent a year ago and 89.2 per cent in the September 2023 quarter.

YES Bank's CASA witnessed a 12.2 per cent YoY increase, reaching Rs 71,749 crore for the December 2023 quarter, up from Rs 63,927 crore in the corresponding quarter a year ago. On a sequential basis, CASA improved by 4 per cent, rising from Rs 68,957 crore in the September 2023 quarter. The CASA to total deposits ratio remained stable at 29.7 per cent during the quarter.

Kotak Institutional Equities expects near flat-to-decline in NII growth in Q3FY24 by slower loan growth and rising cost of funds. Business momentum is gaining traction, primarily in the retail and MSME segments, but overall loan growth is likely to be lower than the industry average. Deposit growth is comfortably meeting business requirements, said Kotak.

We expect NIM at 2.7 per cent, but there is likely to be a lot of volatility, given the nature of income booked when security receipts mature. We should see healthy traction on recovery and upgrades this quarter . Earnings impact is difficult to forecast, given the nature of the provisioning policy. Focus is shifting toward rebuilding the business for the bank," Kotak added.

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