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Yes Bank Shares Fall 4% on Poor Q4 Data

Shares of Yes Bank surged after it received Rs 150 crore from a single trust for a NPA portfolio sale.

Yes Bank shares fell 4% after the fourth-quarter net profit fell 45% year-on-year. At 10:51 am on April 24, the stock was quoted at Rs 15.55.

Morgan Stanley is “underweight” on the stock and lowered its target price to Rs 17.5 on weak revenue growth despite core pre-provision operating profit (PPoP) growth of more than 20% YoY. The bank’s profit after tax (PAT) was lower than expected in the fourth quarter due to lower net interest income (NII) and expenses. However, this was partially offset by lower provisions. However, according to the Morgan Stanley report, the bank’s balance sheet has improved as coverage ratios and capital ratios improved.

On April 22, Yes Bank Ltd reported a 45% drop in stand-alone net profit to Rs 202 crore for the quarter that ended March 31, 2023, due to higher provisions for bad debts. This compares with a stand-alone net profit of Rs 367 crore for the same period a year earlier.

Yes Bank stocks are down 27.94% since the start of the year. As a result, the performance was notably underperforming the benchmark Nifty Bank index, which was largely flat and down 1.94% since the start of the year.

It is also important to note that on a five-year basis, the nifty bank benchmark index returned a fair 66.79%, while Yes Bank stock lost 95.51% of its value over the same period.

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