Yes Bank shares extend gains; climb 10% in three straight sessions

Shares of Yes Bank rose nearly 3 per cent in Tuesday's trade, extending their gains for the third straight session after announcing a partnership with Banking-as-a-Service (BaaS) start-up, Falcon, to tap into the rapidly growing embedded finance market. BaaS model aims to help in rationalising technology-related costs and significantly reduces time-to-market.

The partnership with Falcon would enable it to provide customers with tailor-made financial solutions, Yes Bank stated in a release today. In addition, the private lender said it has partnered with Microsoft to bring a next-generation mobile application (app).

The stock climbed 2.77 per cent to hit a day high of Rs 22.25 over its previous close of Rs 21.65. At today's high level of Rs 22.25, the scrip has jumped 10.42 per cent in three consecutive sessions compared to a closing of Rs 20.15 on December 29 last year. The stock eventually settled 1.85 per cent higher at Rs 22.05.

Resistance on the counter could be seen at Rs 22.55, followed by Rs 23.10 and Rs 24.75, analysts said.

The private lender's stock has moved 11.65 per cent in the last five days. It has recorded 51.86 per cent gains in 2022.

Anita Pai, Chief Operating Officer at Yes Bank, said, "Our partnership with Falcon aligns with this approach as it empowers the bank to create innovative propositions within shorter time periods without compromising on quality and convenience. Going forward, we foresee an exponential demand for embedding financial products in newer ways, and with this collaboration, we aim to deliver that experience to our customers."

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Falcon offers a future-proof stack to build bespoke cards, payments, accounts, and lending products at unreal speeds to financial institutions and tech companies.

On partnership with Microsoft, Prashant Kumar, MD & CEO at Yes Bank said, "We look forward to co-creating a proposition that will offer customers with the benefit of transacting, as well as undertaking a host of other activities on a common platform."

Analysts said that support on the counter can be seen in the Rs 19.8-20 zone. The stock was last seen trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages today.

Yes Bank's 14-day relative strength index (RSI) came at 63.20. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 56.73.

"In the last couple of weeks, we have seen wild swings in this counter, and volume activities have definitely picked up. Resistance on the counter is seen around Rs 23.10 followed by Rs 24.75 whereas immediate support is seen around Rs 20," said Rajesh Bhosale, Technical Analyst at Angel One.

"The private lender looks bullish but could face stiff resistance at Rs 22.55. A daily close above this level should lead to Rs 25.35-27 in the coming days. Strong support will be at Rs 19.8," said A R Ramachandran from Tips2trades.

Meanwhile, Indian equity benchmarks settled higher, led by gains in consumer durables, technology and financial stocks.