Yes Bank
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Yes Bank's recent performance reflects a strategic pivot towards retail-led growth, with management emphasizing the importance of expanding higher-yielding assets to enhance net interest margins (NIM) above 3%. Despite a positive trajectory in loan growth and operational efficiency, challenges remain, particularly regarding the declining CASA ratio and uncertainties surrounding security receipt recoveries. Vista's financial outlook anticipates improved profitability driven by margin expansion, supported by the bank's strong capital position and disciplined risk management. However, the reliance on successful execution of retail strategies and the resolution of legacy issues pose significant risks. The small and medium private banking sector's steady growth, coupled with a stable economic environment, provides a favorable backdrop for Yes Bank's ambitions. Over the next 12-24 months, key opportunities include leveraging partnerships for corporate growth and enhancing digital offerings, while watchpoints include the bank's ability to stabilize its funding profile and manage credit costs effectively
Why We Like This Stock
- Management's focus on retail-led growth and higher-yielding assets is expected to drive NIM improvements
- Strong capital position and operational efficiency provide a solid foundation for future profitability
- The small and medium private banking sector's expansion offers a favorable environment for Yes Bank's growth initiatives
Things To Watch Out For
- Declining CASA ratio poses a risk to funding stability and could impact overall profitability
- Uncertainty surrounding security receipt recoveries may hinder earnings predictability
- Execution risks related to scaling retail operations and managing legacy issues could affect the bank's growth trajectory
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,079 | 8,921 | 9,758 | 10,449 | 12,222 |
| Profit Before Tax (Cr.) | 1,540 | 3,239 | 4,643 | 5,744 | 6,370 |
| PBT Margin | 19.1% | 36.3% | 4758.1% | 55.0% | 52.1% |
| Net Profit (Cr.) | 1,287 | 2,458 | 3,512 | 4,366 | 4,841 |
| Earnings Per Share | 0.4 | 0.8 | 1.1 | 1.4 | 1.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▼ Sell | 20 | 06-Jul-2026 |
| ICICI Securities | ► Hold | 24 | 20-Jul-2026 |
| JMFinancials | ▼ Reduce | 22 | 19-Jul-2026 |
| JPMorgan | ▼ Sell | 20 | 02-Jul-2026 |
| Kotak Securities | ▼ Sell | 20 | 20-Jul-2026 |
| Moneycontrol | ▼ Underweight | 15 | 20-Jul-2026 |
| Nomura | ▲ Buy | 23 | 22-Jul-2026 |
Company Overview
Show Company Profile
Yes Bank Limited engages in the provision of various banking and financial products and services in India. It operates through Treasury, Corporate Banking /Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company provides current, savings, and salary accounts; fixed and recurring deposits; home, car, construction equipment, commercial vehicle, personal, education, housing, and secured business loans; loans against securities and property; and rural and agri loans, as well as micro, small, and medium enterprises loans. It also offers working capital, supply chain, equipment, agri and trade finance, as well as foreign currency loans and term lending; and cash management, capital markets, treasury, investment banking solution, trade advisory, debt capital markets, bullion, overseas financing, liquidity and risk management, invoice management, and escrow services. In addition, the company offers digital banking and payment; financial, banking, technology-led solutions, and strategic advisory services to ministries under the union and state governments, central and state public sector undertakings, boards, and other affiliates; banking solutions to cooperative banks; digital and transaction banking solutions for non-banking finance companies, insurance, mutual funds, and capital market entities; and asset book building services. Further, it provides debit and credit cards, wealth management, and mobile and online banking services; transaction banking services; merchant acquiring; and remittance solutions, as well as operates ATMs and bulk note acceptors. The company was incorporated in 2003 and is headquartered in Mumbai, India.