Yes Bank shares witnessed a nearly 10% drop in the lead-up to its Q2 results for 2024, reflecting significant investor unease. While market experts expect steady performance from the bank, recent developments in deposit growth and asset quality suggest that Q2 may present unique challenges. This article provides a deep dive into Yes Bank’s performance metrics, market outlook, and investment guidance.
Yes Bank’s Market Position and Recent Performance
In the last five sessions, Yes Bank’s stock fell from ₹21.50 to ₹19.50 on the NSE, marking a 9% decline. This price dip aligns with flat earnings expectations for Q2, but analysts note underlying strength in Yes Bank’s loan and deposit growth.
| Metric | Q2FY24 Expected | Q1FY24 | YoY Change |
|---|---|---|---|
| Net Interest Income (NII) | Stable | ₹1,500 Cr | +6.5% |
| Deposit Growth | Moderate | 3.5% | +13% |
| Asset Quality (Gross NPA) | Stable | 2.5% | Slight Decline |
Q2 Earnings Preview and Key Projections
Market experts expect that Yes Bank’s Q2 earnings may stay flat, primarily due to:
- Moderate Deposit Growth: Due to macroeconomic conditions, deposit growth has not expanded as rapidly, potentially affecting profitability.
- Provisions and Asset Quality: While loan slippages may increase slightly, the bank’s proactive provisioning policy should ensure stability in asset quality.
Expert Perspectives on Yes Bank’s Stock Performance
Manish Chowdhury, Head of Research at StoxBox, highlighted that, “Yes Bank is likely to report a stable performance for Q2 despite challenges in deposit mobilization.” Additionally, Hensex Securities’ AVP of Research, Mahesh Ojha, notes that “the bank’s stable asset quality is a positive sign for the coming quarters.”
Investment Guidance
For current investors, experts recommend maintaining Yes Bank shares with a stop-loss around ₹16.90, expecting potential trend reversals if the stock sustains above this level. Fresh investors may consider a buy-on-dips approach, focusing on long-term gains.
Final Thoughts
Yes Bank’s fundamentals suggest cautious optimism. Investors should closely monitor the stock’s behavior post-results to capitalize on potential recovery trends. As Q2 unfolds, holding or entering at low-risk price points could offer favorable returns by year-end.
