Analysis on Yes Bank Ltd

 

Good evening friends

Brief on Yes bank:

The bank is a private area bank. The Bank is occupied with giving financial administrations, including corporate and institutional banking, monetary business sectors, venture banking, corporate money, branch banking, business and exchange banking, and abundance the executives. The Company's portions incorporate Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. Its Treasury section incorporates ventures and monetary business sectors exercises embraced for the benefit of the Bank's clients, exchanging, upkeep of hold necessities and asset assembly. The Corporate/Wholesale Banking incorporates loaning, store taking and different administrations offered to corporate clients. The Retail Banking incorporates loaning, store taking and different administrations offered to retail clients. The Other Banking Operations section incorporates para banking exercises, for example, outsider item dispersion and shipper banking, among others.

Health care and printing instrumentality finance; and business banking services to little, small, and medium enterprises. in addition, the company offers financial and consultive services to ministries below the union and state governments, central and state public sector undertakings, boards, and totally different affiliates; and banking solutions to banks, non-banking finance and housing finance corporations, quality finance corporations, insurance intermediaries, small finance and payment banks, mutual funds, financial institutions, personal equity funds, cooperative and regional rural banks, capital market participants, primary dealers, depositories, AD II license holders, money changers, PPI operators, and payment aggregators. Further, it provides debit and credit cards, current and savings accounts, and mobile banking services; and human action banking services comprising legal instrument, trade finance, give chain finance, exchange, and bullion transaction. additionally, the company offers loan syndication services; investment banking services, moreover as mergers and acquisition consultive, and capital consultive services; and micro-credit, little saving, micro-insurance, and remittal services. As of March thirty one, 2020, it operated one,135 branches; 2 national operational centers; and one,423 ATMs and bunch note acceptors. the company was incorporated in 2003 and is headquartered in metropolis, India.

History of stock price movement

Yes bank is in more focus from last few months. Many Traders & investors are feeling like that they have stuck in this stock. I would like to discuss bit about the past of this bank. Yes bank is very small bank since its beginning but few years back it was very demanding stock of investors & traders even for FIIS & DIIS. 

Few years back, Yes bank was trading above 800rs+ levels with face value of 10rs and then split into face value of 2 after adjustment of price it again went up the level of 380rs+ levels in Aug 2018. After that down fall started in the price of yes bank.

In 2019, from the price level of  290rs, it started its another down fall journey when scams into this bank came into the media news channels & this bank made low nearly 6rs. 

When there was rumor about the insolvency of this bank then State bank of India, LIC & some other financial institutes  came into the picture for holding its hand . After this action survival of this bank started and Performance of this bank is also improving.

The issue with Yes Bank was that, under Rana Kapoor, it had given a ton of advances that wouldn't return and it continued hiding the awful advances away from view until there was much beyond what it could cover up.

The issue of the subtle borrowers may in any case endure. Indeed, even in the initial three months of 2021, the loan specialist needed to discount somewhat more than 6 out of each 100 it gave out. The measure of such focused on advances, ones that are bound to go bad, is still high despite the fact that it is a fourth of what it was only three months sooner.

SEBI forced 25 crore punishment on Yes Bank and fines of 50 lakh to 1 crore on senior leaders of its private abundance supervisory group. This SEBI crackdown was one of the significant explanations behind Yes Bank share value crash. Since, the private moneylender needs to remember revenue for premium for its contributors in the final quarter, market is expecting Yes Bank's monetary record to slip into the negative zone. In this way, Yes Bank stocks are relied upon to proceed under tension.

But the question is that why after such a big efforts, the stock price of the yes bank is not moving up ? 

It is the best question into the mind of every investors and traders ? 

Even FIIs are increasing their holding in Yes bank.

Here is the Answer of all of your queries

First, there is change in management of the bank which will take some time to settle down the negative things which happened in this bank.  It will take some more time to clear negative from the balance sheet of the bank & to reduce the NPA %.age

Second, It is not an easy to resettle NPA's matter of the bank & few matters of this bank is also into the respected court of India. 

Third, Yes bank had biggest hit to its brand name or value during its hard time few years back.

Hopes: 

1 The change of management is the biggest hope for this bank & current management proved it right in the past few Qtr results.

2 The CASA of the bank has also improved YOY basis.

3 Confidence of Depositors has also improved after the change of management of the bank.

4 Little increase in Deposits YOY basis is also giving some hopes to share holders.

It is very short analysis by me on Yes bank but the above mentioned reasons and hopes are enough for shareholders those want to hold or buy it for long term point of view. But It will check patience of the share holders. The only good hope is with the bank management and improving results of Yes bank.

I have not used accounting terms or data into my analysis because I want to share my view in very simple manner. I hope you all will take your own decision after reading this Post. 

 Disclaimer:

I shared my Personal view on Yes bank but it may differ or same with others person views. The data of company profile sourced from company website and after the use of internet search. The view on the stock is personal.

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