Yes Bank shares may trade volatile and attract some buying interest next week as the private lender has announced to raise ₹2,500 crore fund via issuance of debt securities
Yes Bank shares have been in base building mode for last three months. After bottoming out in mid-March 2023, Yes Bank share price has been oscillating in ₹14.50 to ₹17 apiece range. However, the private bank share witnessed heavy sell off after climbing to 52-week high of ₹24.75 per share in December 2022. But, Yes Bank board announced to raise ₹2,500 crore fund through issuance of debt securities including but not limited to non-convertible debentures, bonds, Medium Term Note (MTN) etc. This has attracted attention of market experts and observers including positional investors.
According to stock market experts, this fund raise announcement by Yes Bank is expected to work in favour of Yes Bank shares when market reopens for trading purposes on Monday next week. They said that Yes Bank share price is having strong resistance at ₹18 to ₹20 apiece zone and on breaching this hurdle, the stock may climb a new 52-week high if the uptrend continues. However, they also said that Yes Bank shares may trade volatile and hence one should maintain strict stop loss at ₹13 apiece levels.
Yes Bank share price target
Recommending ‘buy on dips’ strategy in regard to Yes Bank shares, Anuj Gupta, Vice President — Research at IIFL Securities said, “Yes Bank board or directors announcing fund raise to the tune of ₹2,500 crore via debt securities is going to trigger positive sentiments in regard to Yes Bank shares. However, Yes Bank shares are expected to remain highly volatile but on every dip we are expecting strong bounce back and hence recommend buy on dips strategy in regard to Yes Bank shares as the stock has strong support placed at ₹13 apiece levels. However, Yes Bank share price today is facing resistance at ₹18 to ₹20 zone and on breaching this hurdle on closing basis, the stock may climb to a new 52-week high and go up to ₹26 apiece levels in short term.”
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Yes Bank news
Yes Bank informed Indian stock market bourses about ₹2,500 crore fund raise in an exchange communication available on BSE citing, “The Board of Directors of the Bank in its meeting held on June 23, 2023, have, considered and approved draft Notice of the Annual General Meeting to be held on August 18, 2023, inter alia Borrowing/raising funds in Indian/foreign currency up to an amount of Rs. 2,500 Crores by issue of debt securities including but not limited to non-convertible debentures, bonds, Medium Term Note (MTN) etc. in terms of Section 42, 71 and other applicable provisions of the Companies Act, 2013 read with Rules thereunder, SEBI (Issue and Listing of Debt Securities) Regulations, 2008, the SEBI Listing Regulations and other applicable laws, if any, which is subject to necessary approvals from shareholders/ regulators, as applicable.”
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Yes Bank Q4 results 2023
In Q4 FY23 results, Yes Bank reported dip in net profit from ₹367.46 crore to ₹202.43 crore, logging near 45 per cent decline in year-on-year (YoY) basis. However, on quarter-to-quarter (QoQ) basis, Yes Bank reported around 293 per cent rise against Q3FY23 net profit of ₹51.52 crore. Blaming the rising provisioning for dip in net profit Yes Bank said that it has managed to report full year profitability for second straight year despite rise despite accelerated provisioning.
On total income front, Yes Bank reported improvement as the private lender reported total income of ₹7,298.51 crore in fourth quarter of the recently ended fiscal, which stood at ₹5,829.22 crore in the corresponding period in previous financial year. In FY23, Yes Bank posted 19.46 per cent rise in total income as its Q4FY23 total income stood at ₹26,624.08 crore against total income of ₹22,285.98 crore in FY22.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
