Why is Yes Bank share price skyrocketing today - explained

Yes Bank share price saw a sudden spike of over 9% on Friday led by heavy volumes. Yes Bank shares hit an intraday high of ₹26.28 apiece on the BSE, gaining as much as 9.68% from previous close.

The volumes of Yes Bank shares traded on July 5 also jumped significantly. A total of around 51 crore Yes Bank shares changed hands on Friday as compared with average one week volumes of 15 crore shares.

Technically, Yes Bank stock is indicating a potential breakout and analysts believe it may have the potential for further rally. 

“Yes Bank stock has recently broken out of a daily trendline with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the ₹27 level, it may have the potential to reach short-term targets of ₹34. On the other hand, immediate support levels are located at ₹24 and ₹23, which can be considered opportunities to buy on dips,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.

The Relative Strength Index (RSI) currently stands at 75 and is trending upward, indicating increasing buying momentum, he noted. To prudently manage risk, the Choice Broking analyst advises to set a stop-loss (SL) at ₹21.5.

“Considering the technical analysis and the current market conditions, Yes Bank appears to present an appealing buying opportunity for those aiming for a ₹34 price target, provided that appropriate risk management measures are in place,” Bhojane said.

On July 2, in its quarterly business update, the private sector lender Yes Bank reported a 0.9% growth in loans and advances to ₹2.30 lakh crore for the quarter ended June 2024 as against ₹2.28 lakh crore in the March quarter. The loans & advances of the bank grew 14.8% from ₹2.00 lakh crore in the year-ago quarter, according to a regulatory filing.

Yes Bank’s deposits in Q1FY24 fell marginally by 0.5% QoQ to ₹2.65 lakh crore in the quarter ended June from ₹2.67 lakh crore in the previous quarter. On a YoY basis, deposits rose 20.8%.

CASA ratio stood at 30.7% in the April-June quarter as against 30.9% in the March quarter and 29.4% year ago.

Yes Bank’s Liquidity Coverage Ratio (LCR) stood at 137.8%, from 116.1%, QoQ, and 127%, YoY.

Meanwhile, Yes Bank Q1 results are set to be announced on Saturday, July 20, 2024, the lender said in an exchange filing.

Yes Bank share price has been gaining momentum gradually as the stock is up 11% in one week and more than 16% in one month. Yes Banks shares have rallied 23% year-to-date (YTD) and more than 53% in the past one year.

The private sector lender Yes Bank is expected to report net interest income (NII) growth of 7.1% YoY in the first quarter of FY25, with net profit rising 31.9% YoY. Loan growth is likely to be healthy at 15% YoY, but flat QoQ, which will be offset by rising cost of funds. Net interest margin is expected to fall to 2.3%, according to estimates by Kotak Institutional Equities.

Yes Bank has slowed growth in unsecured loans given the increase in delinquency rates. Deposit growth at around 21% YoY is ahead of loan growth and strong.

At 2:05 pm, Yes Bank shares were trading 9.02% higher at ₹26.12 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.