YES Bank share traded 2% lower in Wednesday's early trade. YES Bank stock opened at its last close of Rs 16.60 on BSE today. The stock also touched a day's high of Rs 16.65 in early session. However, the shares erased gains and fell 2% to hit the day's low of Rs 16.25 during today's session.
The stock has fallen after three days of consecutive gain. YES Bank stock rose 1% yesterday.
YES Bank stock trades higher than 5 and 100-day moving averages but lower than 20, 50 and 200-day moving averages.
The share has fallen 8% in a month. Year-to-date, the stock is down 7%. However, it has risen 5% in one week.
Market capitalisation of the lender stood at Rs 41,465.87 crore. The stock has touched a 52-week high of Rs 87.95 and a 52-week low of Rs 5.55. Share of the private lender, with Rs 2 face value has fallen 53% in one year.
Meanwhile, Emkay Research gave a 'Sell' rating to the bank and set a target price of Rs 11 for the share, given sub-par return ratios and unfavourable risk-reward with higher valuations.
"We believe that the transfer of NPAs to a separate ARC (somewhat similar to IDBI in 2003) probably means window dressing standalone bank B/sheet,but we need to see the extent of hair-cuts, structure of ARC and recovery record in the ARC, which is not inspiring in case of IDBI SASF," Emkay Research said in its report.
Similarly, ICICI Securities said in a recent note that YES Bank's December-quarter earnings have aggravated fears of its asset quality issues and gave a "hold" rating on the stock with a revised price target of Rs 16.
"The portfolio vulnerability becomes visible from, a spike in standstill non-performing loans or NPLs (from 1.5% to 5%), SMA-2 pool (from 2.4% to 4%), SMA-1 (from 1.6% to 7.3), and additional restructuring outside of this pool at 3.2% over and above the labelled non-performing assets at 22%," it added.
YES Bank said its net interest income jumped to Rs 2,560.4 crore from Rs 1,064.7 crore YoY. The private sector lender posted a net profit of Rs 151 crore in the third quarter ended December 2020 (Q3FY21) against a staggering loss of Rs 18,560 crore in third quarter ended December 2019 (Q3FY20). Sequentially, net profit was up 16.5%.
The bank saw 2% quarter-on-quarter growth in loan book to Rs 1,69,721 crore in the third quarter. Its capital adequacy stood at 19.5% in December 2020. It added 225,000 customers during the quarter and reported a gross NPA ratio of 15.36% as on 31 December.