YES Bank shares at Rs 32! Ventura sees 47% upside post Q3 results
Ventura said the most remarkable aspect of Q3 results was the extremely low provision costs, which stood at Rs 22 crore, a dramatic reduction from Rs 419 crore in Q2FY26 and Rs 259 crore in Q3FY25.
- Jan 22, 2026,
- Updated Jan 22, 2026 10:58 AM IST
Ventura Securities has retained its 'Buy' rating on YES Bank Ltd, with a price target of Rs 32, which implied 47 per cent upside from the current market price of Rs 22-odd levels over the next 24 months. The brokerage valued the stock at 1.7 times FY28E price to adjusted book value.
"YES Bank’s Q3 performance highlighted its focus on margin expansion, asset quality improvements, and operational efficiency, while still facing challenges in credit growth and dividend uncertainty," it said on January 21.
YES Bank's net profit rose 55.4 per cent year on year to Rs 952 crore. Adjusting for a Rs 155 crore gratuity impact due to changes in labour codes, profit stood at Rs 1,068 crore, reflecting 74.4 per cent YoY growth.
Ventura said the most remarkable aspect of Q3 results was the extremely low provision costs, which stood at Rs 22 crore, a dramatic reduction from Rs 419 crore in Q2FY26 and Rs 259 crore in Q3FY25. The low provision cost was driven by a P&L gain of Rs 555 crore from Security Receipts (SRs), it said.
"The jump in profitability was accompanied by a notable improvement in the bank’s return on asset (RoA), which increased to 0.9 per cent from 0.6 per cent in the same period last year, and return on equity (RoE), which rose to 7.7 per cent from 5.2 per cent," Ventura said.
Net interest margin (NIM) increased to 2.6 per cent, up 20 basis points YoY and 10 basis points QoQ. Ventura attributed this to a 50 basis point YoY reduction in deposit costs and asset repricing benefits.
Non interest income rose 8 per cent YoY to Rs 1,633 crore, driven by higher fee income from core business segments such as credit cards and third party offerings. Retail fee income, including life and general insurance products, supported the increase, Ventura said.
"On the cost front, the bank maintained strong control over its operating expenses, which grew at a slower pace compared to income, leading to an improved cost-to-income ratio," it said.
Operating expenses for the quarter stood at Rs 2,865 crore, up 7.8 per cent YoY. Adjusted for the gratuity impact, expense growth was 2.0 per cent. The cost to income ratio improved to 66.1 per cent from 71.1 per cent in Q3 FY25, the brokerage said.
On risks, Ventura cited slower than anticipated economic growth, a sharp rise in interest costs, and potential deterioration in asset quality.
"Despite the strong profitability, the management refrained from providing a timeline for the resumption of dividends, citing the need for further board discussions and the high equity base," Ventura said.
Ventura Securities has retained its 'Buy' rating on YES Bank Ltd, with a price target of Rs 32, which implied 47 per cent upside from the current market price of Rs 22-odd levels over the next 24 months. The brokerage valued the stock at 1.7 times FY28E price to adjusted book value.
"YES Bank’s Q3 performance highlighted its focus on margin expansion, asset quality improvements, and operational efficiency, while still facing challenges in credit growth and dividend uncertainty," it said on January 21.
YES Bank's net profit rose 55.4 per cent year on year to Rs 952 crore. Adjusting for a Rs 155 crore gratuity impact due to changes in labour codes, profit stood at Rs 1,068 crore, reflecting 74.4 per cent YoY growth.
Ventura said the most remarkable aspect of Q3 results was the extremely low provision costs, which stood at Rs 22 crore, a dramatic reduction from Rs 419 crore in Q2FY26 and Rs 259 crore in Q3FY25. The low provision cost was driven by a P&L gain of Rs 555 crore from Security Receipts (SRs), it said.
"The jump in profitability was accompanied by a notable improvement in the bank’s return on asset (RoA), which increased to 0.9 per cent from 0.6 per cent in the same period last year, and return on equity (RoE), which rose to 7.7 per cent from 5.2 per cent," Ventura said.
Net interest margin (NIM) increased to 2.6 per cent, up 20 basis points YoY and 10 basis points QoQ. Ventura attributed this to a 50 basis point YoY reduction in deposit costs and asset repricing benefits.
Non interest income rose 8 per cent YoY to Rs 1,633 crore, driven by higher fee income from core business segments such as credit cards and third party offerings. Retail fee income, including life and general insurance products, supported the increase, Ventura said.
"On the cost front, the bank maintained strong control over its operating expenses, which grew at a slower pace compared to income, leading to an improved cost-to-income ratio," it said.
Operating expenses for the quarter stood at Rs 2,865 crore, up 7.8 per cent YoY. Adjusted for the gratuity impact, expense growth was 2.0 per cent. The cost to income ratio improved to 66.1 per cent from 71.1 per cent in Q3 FY25, the brokerage said.
On risks, Ventura cited slower than anticipated economic growth, a sharp rise in interest costs, and potential deterioration in asset quality.
"Despite the strong profitability, the management refrained from providing a timeline for the resumption of dividends, citing the need for further board discussions and the high equity base," Ventura said.