YES Bank share price was trading a tad higher in Thursday's volatile session, ranking among the most active banking scrips in terms of volumes on both BSE and NSE today.
Reversing from three sessions of consecutive fall, the stock of private lender opened higher at Rs 16.25 against its previous close of Rs 16.30. The stock gained 1.5% to the day's high at Rs 16.55 and also hit an intraday low of Rs 16.05.
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 10% in a month. Year-to-date, the stock is down 9%. However, it has risen 8% in one week.
Market capitalisation of the lender stood at Rs 40,714.22 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.