Yes Bank
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Yes Bank is navigating a transformative phase under new leadership, with a strategic focus on retail-led growth and a partnership with SMBC to enhance its corporate banking capabilities. Management's optimism is supported by accelerating loan growth and improved operating leverage, which are critical for achieving a net interest margin (NIM) above 3%. However, challenges remain, particularly regarding the funding profile and the predictability of security receipt recoveries. Vista's financial outlook reflects stable revenue growth and margins, aligning with management's focus on high-quality advances and risk management. The bank's elite balance sheet and fair valuation suggest a solid foundation for future growth, despite cautious investor sentiment. Over the next 12-24 months, key opportunities include leveraging the SMBC partnership and expanding the retail franchise, while watchpoints include the execution risks associated with retail scaling and potential regulatory changes. Overall, the outlook remains cautiously optimistic, with expected upside of approximately 12.55%
Why We Like This Stock
- Strategic partnership with SMBC enhances corporate banking capabilities and growth potential
- Accelerating loan growth and improved operating leverage support a positive earnings outlook
- Strong capital position and focus on high-quality advances position the bank for sustainable growth
Things To Watch Out For
- Weakening funding profile and declining CASA ratio pose risks to margin expansion
- Uncertainty surrounding security receipt recoveries could impact earnings predictability
- Execution risks related to scaling the retail franchise may hinder growth targets
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,079 | 8,921 | 9,758 | 10,382 | 11,471 |
| Profit Before Tax (Cr.) | 1,540 | 3,239 | 4,643 | 4,788 | 5,383 |
| PBT Margin | 19.1% | 36.3% | 47.6% | 46.1% | 46.9% |
| Net Profit (Cr.) | 1,287 | 2,458 | 3,512 | 3,639 | 4,091 |
| Earnings Per Share | 0.4 | 0.8 | 1.1 | 1.2 | 1.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▼ Sell | 22 | 21-Aug-2026 |
| Nomura | ▲ Buy | 23 | 22-Jul-2026 |
| ICICI Securities | ► Hold | 24 | 20-Jul-2026 |
| Kotak Securities | ▼ Sell | 20 | 20-Jul-2026 |
| Moneycontrol | ▼ Underweight | 15 | 20-Jul-2026 |
| JMFinancials | ▼ Reduce | 22 | 19-Jul-2026 |
| Citigroup | ▼ Sell | 20 | 06-Jul-2026 |
| JPMorgan | ▼ Sell | 20 | 02-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 offers savings, salary, and current accounts; deposits; safe deposit locker; credit, debit, prepaid, and MCTC cards; and NRI products. It also provides consumer, commercial, MSME, and rural and agri loans; custom duty, GTS, direct tax, online loan, credit card, and bill payments, as well as outward remittances and forex cards; wealth management, insurance, and government schemes; and working capital finance, term lending, foreign currency loan, supply chain finance, and equipment finance. In addition, the company offers trade finance; cash management; value added services; commercial business, multinational corporate, government, emerging corporate, and corporate banking, as well as financial institutions; digital solutions; and agri and micro products. Further, it provides agri-business product management; merchant acquiring services; food and agribusiness strategic advisory and research; corporate and government advisory; project finance, real estate and loan syndication; YES Premia, YES Grandeur, YES First, Yes Private, YES CONNECT, YES Genie, YES Prosperity, and YES Powher Up products; IRIS Biz mobile app; and ATM. The company serves large corporates, small and medium enterprises, individuals, women microfinance borrowers, and others. The company was incorporated in 2003 and is headquartered in Mumbai, India.