The Board of Directors of YES Bank will be held on Thursday, June 10, 2021 to consider and approve, seek shareholders’ approval for borrowing or raising funds. Yes Bank share price rises over 10% today, up Rs 1.45 or 10.5%. Yes Bank’s market cap is near Rs 38000 cr. The 52 week low on Yes Bank is Rs 11.1 and 52 week high is Rs 32.
Zee Business Managing Editor and Market Guru Anil Singhvi said that the Yes Bank share price is trading in the range of Rs 13 – Rs 14 on the lower side and Rs 17 – Rs 18 on the higher side. Yes Bank share price should be bought at the lower range and sold in the higher range, explains Singhvi.
Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking says that
Yes Bank ever-increasing stress book:
Anand Rathi said that Yes Bank disclosed an overall stress book of Rs 185.5 bn (10.9% of loans), of which Rs 83 bn are standstill accounts. The potential Yes Bank stress book is up 106% from what the bank disclosed in the last quarter. Besides the Rs 185 bn book, Rs 123 bn is outstanding as SMA-1. Although most of the Yes Bank stress stemmed from the corporate book, increases in SME and the retail book are concerns. Given these fresh disclosures, Yes Bank slippages are expected to be higher than what management had talked about earlier.
Yes Bank’s Collections efficiency:
Yes Bank management said major stress in the corporate book stems from the real-estate and hospitality sectors.
Yes Bank Negative earnings in the near term:
With an expected higher slippage rate when the NPA standstill is lifted, Yes Bank has built in 4.5% credit costs for FY21. Higher credit costs and the weaker operating performance (attributed to slower business growth) would lead to negative earnings in the near term.
Yes Bank Key Risks:
Higher recoveries from stressed account
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