Yes Bank Share Price: Thursday started well for Yes Bank. Yes Bank shares rose 10% on BSE and had reached a 52-week high. However, later on this momentum kept coming to an end. Yes Bank shares were trading up 2.72% at Rs 15.10 at 10.40 in the morning.
The reason for this rise in the shares of Yes Bank was the improvement in the rating. Rating agency CARE upgraded the ratings of all debt instruments including infrastructure bonds, Tier 2 bonds of the bank.
What was the reason for the rating upgrade?
Rating agency CARE said that for some time there has been a steady improvement in the business of Yes Bank. Bank advances and deposits have increased during this period. Along with this, good strength has also been seen in CASA deposits. The company’s profitability has improved in the first nine months of Fiscal Year 2022. Despite the crisis of coronavirus infection, Yes Bank has done good business during this period.
YES Bank returns, shares rise 23% in 4 days, know what is the opinion of technical analysts?
CARE further informed that the credit profile has improved after the introduction of FPO in July 2020 following the bank’s restructuring scheme. Also, the capitalization of the bank has also improved. This has made the bank able to tolerate the shocks in asset quality.
Rating agency CARE further wrote, “The recovery of the bank may be better than expected in the coming days. However, the burden of stressed loans will also remain on the bank. In such a situation there is a possibility that the slippage (delay in getting EMI) is estimated. The risk profile of the bank will be affected due to higher than that.
Good speed came a day ago
Shares of YES Bank closed at Rs 15.20 with a jump of 16.92% on the NSE on Wednesday. Some analysts say that the shares of YES Bank may face resistance to cross the Rs 15.20 to Rs 15.50 level. At the same time, some analysts say that this stock can rise to the level of Rs 16 or even Rs 20 from here. However, on the downside, he said that the level of Rs 13 will act as a support level for this.
Yes Bank deposit increased
While releasing the business update on Tuesday, Yes Bank said that in the March quarter, the bank’s deposits grew by 7% on a quarterly basis to Rs 1,97,281 crore. On the other hand, deposits have grown by 21% on a year-on-year basis.
Yes Bank’s advance has increased 9% on a year-on-year basis to Rs 1,81,508 in the March quarter. It was Rs 1,66,893 crore in the corresponding quarter of last year. Advance refers to the loan that the bank gives to a company for a specific work. Companies have to repay this fund faster than loans.