YES Bank shares: ICICI Securities upgrades the stock; check latest price target
Domestic brokerage firm ICICI Securities has upgraded YES Bank shares post Q1 results as it has upgrade the stock to 'hold' from 'reduce' rating, revising the target price.
- Jul 22, 2025,
- Updated Jul 22, 2025 1:24 PM IST
Domestic brokerage firm ICICI Securities has upgraded YES Bank shares post Q1 results. In its latest report, the domestic brokerage firms said that the PAT trajectory continues to improve and SMBC transactions offer option value. It has upgraded the stock to 'hold' from 'reduce' rating, revising the target price.
YES Bank sustained an improving PPOP/ PAT trajectory in Q1FY26 with PAT up 8.5 per cent QoQ at Rs 800 crore. RoA inched up to 0.8 per cent. NIM was flattish QoQ but revenue growth was led by strong treasury. RIDF drag continues to recede. Net NPA was stable QoQ at 0.3 per cent, while PCR remains comfortable at 80 per cent, said ICICI Securities in its note.
We concur with its guidance of 1 per cent RoA for ‘exit FY26 and beyond’, driven by NIM revival and comfortable asset quality. SMBC has agreed to purchase 20 per cent stake in YES Bank at Rs 21.5 per share. We believe SMBC transaction, if approved, offers healthy option value to existing shareholders and is a key monitorable" it added with a 'hold' rating and a target price of Rs 20 (Rs 16 earlier).
On Saturday, YES Bank reported a 59 per cent year-on-year (YoY) jump in net profit to Rs 801 crore in June 2025 quarter, compared to Rs 502 crore in the same quarter last year. The private lender's net interest income (NII) grew 5.7 per cent YoY to Rs 2,371 crore, while non-interest income surged 46.1 per cent to Rs 1,752 crore for the quarter.
YES Bank's provisions rose 34 per cent YoY to Rs 284 crore, but they declined sequentially (QoQ), providing some relief to investors. The private lender-maintained stability, with gross non-performing assets (NPAs) ratio flat at 1.60 per cent and net NPA at 0.30 per cent, as of June 30, 2025.
YES Bank shares were trading marginally lower, falling about half a per cent, to Rs 20.06 on Tuesday, with its total market capitalization barely holding Rs 63,000 crore mark. The stock had settled at Rs 20.16 on Monday.
YES Bank's core performance remained weak, with credit growth slowing to 5 per cent YoY, while margins remained low at 2.5 per cent, said Emkay Globa, which revised up FY26E EPS by 5 per cent and in turn its target by 6 per cent to Rs 17 from Rs 16. However, it retained a 'sell' rating, given sub-par growth/return ratios and higher valuations.
YES Bank reported 60 per cent YoY earnings growth in Q1FY26, led by 50 per cent YoY operating profit growth, but offset by 35 per cent YoY increase in provisions, said Kotak Institutional Equities. "We maintain 'sell' rating with an fair value of Rs 18 (from Rs17 earlier), as valuations remain expensive," it added.
Domestic brokerage firm ICICI Securities has upgraded YES Bank shares post Q1 results. In its latest report, the domestic brokerage firms said that the PAT trajectory continues to improve and SMBC transactions offer option value. It has upgraded the stock to 'hold' from 'reduce' rating, revising the target price.
YES Bank sustained an improving PPOP/ PAT trajectory in Q1FY26 with PAT up 8.5 per cent QoQ at Rs 800 crore. RoA inched up to 0.8 per cent. NIM was flattish QoQ but revenue growth was led by strong treasury. RIDF drag continues to recede. Net NPA was stable QoQ at 0.3 per cent, while PCR remains comfortable at 80 per cent, said ICICI Securities in its note.
We concur with its guidance of 1 per cent RoA for ‘exit FY26 and beyond’, driven by NIM revival and comfortable asset quality. SMBC has agreed to purchase 20 per cent stake in YES Bank at Rs 21.5 per share. We believe SMBC transaction, if approved, offers healthy option value to existing shareholders and is a key monitorable" it added with a 'hold' rating and a target price of Rs 20 (Rs 16 earlier).
On Saturday, YES Bank reported a 59 per cent year-on-year (YoY) jump in net profit to Rs 801 crore in June 2025 quarter, compared to Rs 502 crore in the same quarter last year. The private lender's net interest income (NII) grew 5.7 per cent YoY to Rs 2,371 crore, while non-interest income surged 46.1 per cent to Rs 1,752 crore for the quarter.
YES Bank's provisions rose 34 per cent YoY to Rs 284 crore, but they declined sequentially (QoQ), providing some relief to investors. The private lender-maintained stability, with gross non-performing assets (NPAs) ratio flat at 1.60 per cent and net NPA at 0.30 per cent, as of June 30, 2025.
YES Bank shares were trading marginally lower, falling about half a per cent, to Rs 20.06 on Tuesday, with its total market capitalization barely holding Rs 63,000 crore mark. The stock had settled at Rs 20.16 on Monday.
YES Bank's core performance remained weak, with credit growth slowing to 5 per cent YoY, while margins remained low at 2.5 per cent, said Emkay Globa, which revised up FY26E EPS by 5 per cent and in turn its target by 6 per cent to Rs 17 from Rs 16. However, it retained a 'sell' rating, given sub-par growth/return ratios and higher valuations.
YES Bank reported 60 per cent YoY earnings growth in Q1FY26, led by 50 per cent YoY operating profit growth, but offset by 35 per cent YoY increase in provisions, said Kotak Institutional Equities. "We maintain 'sell' rating with an fair value of Rs 18 (from Rs17 earlier), as valuations remain expensive," it added.