YES Bank shares jump nearly 8%; how strong is this upmove?

Shares of YES Bank Ltd surged 7.69 per cent in Friday's trading session, hitting a high of Rs 23.95. The stock was witnessing strong trading activity along with the price rise, with around 76.60 lakh shares changing hands on BSE. The volume was more than double the stock's two-week average volume of 31.79 lakh shares.

The turnover on the counter stood at Rs 17.73 crore, while YES Bank's market capitalisation was around Rs 73,981.01 crore at the time of writing.

Technical view

Ravi Singh, Chief Research Officer at Master Capital Services, said the stock has recorded a fresh breakout.

"YES Bank is appearing strong on charts and has potential to hit Rs 25 level in the near term. Keep stop loss at Rs 22 for this trade," Singh stated.

AR Ramachandran, Sebi-registered research analyst at Tips2trades, also said the stock remains bullish on daily charts.

"YES Bank's stock is bullish on daily charts with strong support at Rs 22. A daily close above the resistance of Rs 24 could lead to an upside target of Rs 25.3 in the near term," Ramachandran said.

Q1 earnings

YES Bank reported a 33.69 per cent year-on-year (YoY) rise in standalone net profit to Rs 1,071.80 crore for the June quarter, compared with Rs 801.07 crore in the corresponding quarter last year.

The private sector lender's net interest income (NII) rose 17.5 per cent YoY and 5.6 per cent quarter-on-quarter (QoQ) to Rs 2,786 crore. Its net interest margin (NIM) improved by 20 basis points YoY to 2.7 per cent.

YES Bank said the expansion in NIM was aided by a lower cost of deposits and a reduction in balances of PSL (Priority Sector Lending) shortfall deposits.

The lender's Managing Director and CEO Vinay M Tonse said the bank had started FY27 on a strong footing, delivering higher core earnings despite a sharp decline in gains from security receipts and treasury operations.

According to Tonse, the performance reflected the strengthening of the bank's underlying franchise.