YES Bank shares in focus after Q2 biz updates; where the stock is headed?

Shares of YES Bank will be in focus during the trading session on Monday after the Mumbai-based private lender announced its business update for the three-months ended on September 30, 2025. The private lender shared its quarterly update with the exchanges after market hours on Friday.

YES Bank reported growth in loans and deposits on both quarter-on-quarter (QoQ) and year-on-year (YoY) basis for the July-September 2025 quarter. Its loans and advances jumped 3.9 per cent QoQ to Rs 2,50,586 crore for the period ended on September 30, 2025 from Rs 2,41,024 crore in the quarter ago, while 6.5 per cent YoY from Rs 2,35,117 crore in the year ago period.

YES Bank's all deposits jumped 7.6 per cent sequentially to Rs 2,96,831 crore in September 2025 quarter from Rs 2,75,843 crore in June 2024 quarter. Its deposits rose 7.1 per cent on a yearly basis from Rs 2,77,214 crore in the same period a year ago.

The current-account savings-account (CASA) ratio, a crucial indicator of a bank's financial health and profitability, came in at 33.8 per cent at the end of September 2025. This was an improvement from 32.8 per cent in the June 2025 quarter and 32 per cent in September 2024 quarter.

In absolute terms, CASA increased 11 per cent sequentially from Rs 90,351 crore in Q1FY26 and 13.2 per cent on a yearly basis from Rs 88,601 crore in Q2FY25 to Rs 1,00,263 crore in Q2FY26.

Credit to deposit ratio, however, dropped marginally on a YoY basis to 84.4 per cent from 84.8 per cent. It stood at 87.4 per cent for the April-June 2025 period. This ratio is a key banking metric that shows what percentage of a bank's total deposits have been lent out as loans, indicating bank's efficiency in utilizing its deposit base.

YES Bank's liquidity coverage ratio remains healthy at 125.1 per cent for the September 2025 quarter. However, it stood at 135.8 per cent in the June 2025 quarter and 132 per cent in September 2024 quarter.

Shares of YES Bank settled at Rs 21.85 on Friday, rising 0.4 per cent for the day. The lender's total market capitalization stood above Rs 68,500 crore. The stock has jumped nearly 37 per cent from its 52-week low at Rs 16.20 hit four months ago. The stock is up nearly 10 per cent in the last one month.

Last month, Japan's financial conglomerate Sumitomo Mitsui Banking Corporation (SMBC) acquired a significant stake 24.22 per cent in YES Bank from a host of other lenders including SBI, HDFC Bank, Federal Bank, Bandhan Bank and CA Basque Investments, an affiliate of the global investment firm Carlyle Group. The Japanese firm now holds 759.51 crore shares in the lender.

Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets suggested traders to consider holding their existing long positions at the current price as YES Bank shares are making higher high formation which is a sign of strength on the daily charts.

"The stock is outperforming the benchmark indices and even the momentum indicator viz RSI is positively poised. This suggests that momentum on the upside is likely to continue," he said with a stop loss of Rs 19 and target price of Rs 25-27 in the coming few weeks.