YES Bank shares in focus after clarification; lender says arrangement with startup LeRemitt at nascent stage

YES Bank Ltd shares will be in focus on Thursday morning after the private lender said its arrangement with a startup, as reported by media, is currently at a nascent stage and has absolutely no material impact on the business volumes or revenues of the bank.

In a filing to BSE, the bank said the news regarding the bank’s tie-up with LeRemitt, a fintech start-up, is in the normal course of business of the bank to enable Digital solutioning for the MSME customers of the bank.

"This arrangement is currently at a nascent stage and has absolutely no material impact on the business volumes or revenues of the bank," it said.

To recall, BSE had sought a clarification from YES Bank on the news appearing on a media portal. YES Bank shares had settle at Rs 29.83 on Wednesday, up 17.35 per cent on BSE.

Prabhudas Lilladher said the stock has witnessed a decent rally from Rs 16 level with series of higher-lows pattern formation on the daily chart. The YES Bank stock peaked out near Rs 26.25 zone and thereafter, with a short correction seen, cooled off from the overheated zone.

"Currently, the stock has taken support near the significant 50EMA level of Rs 22.60 zone and saw a breakout above the previous peak of Rs 26.25 zone with a series of bullish candle formation to improve the bias once again and with a higher low pattern formed once again has improved the bias. We expect the stock to rise till the initial target of Rs 32. With strength sustaining, it can achieve the next target of Rs 35 and Rs 44 levels, respectively," Prabhudas Lilladher said.

The near-term support would be maintained near the Rs 22.60 zone, the brokerage said,

YES Bank recently received an intimation from the Reserve Bank of India (RBI) suggesting the apex bank has accorded its nod to HDFC Bank Limited for buying an aggregate of up to 9.50 per cent of the paid-up share capital or voting rights of the bank.

The RBI said if the HDFC Bank fails to acquire major shareholding within a period of one year from the date of aforesaid RBI letter, the approval would stand cancelled.

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