Will Yes Bank's shares win the lottery or fall? Find out what the experts are saying

Yes Bank, a private sector bank, announced its September quarter earnings last Friday. At the same time, investors in Dalal Street were interested in its shares. The bank's asset quality has improved slightly. The bank reported Rs. 129.37 crore. In the same quarter last year, the bank lost Rs. The loss was Rs 600.08 crore. In the June quarter, the bank reported Rs. The profit was Rs 45.44 crore.

While Yes Bank's stock is trading at a slightly higher price than its previous high, investors looking for higher-yielding stocks in the stock market are keeping an eye on Yes Bank's stock. However, experts are divided over the bank.

Market analyst Ambareesh Baliga said, "We should not expect this stock to go above its previous high. It is very difficult to reach that level after expansion and decline in equity capital. "It will be a rare case if the bank survives in the moratorium imposed by the RBI," he said. In the past, such banks have not survived or merged with the big banks.

One year ago , the only question was whether Yes Bank would survive. The government put in place professional management, which helped the bank survive. Not only that, the bank also showed signs of growth.

Ajit Mishra, Vice President, Research, Religare Broking, said, “Yes Bank has performed well despite challenges in the last few quarters. Also, we have to keep the NPA in mind as it could be exacerbated by the Koro epidemic. '

Analysts are keeping a close eye on NPAs, provisions, margins and increase in deposits and loan books. The bank's NPA is currently 16.30 per cent of the total, up from 17.30 per cent in the previous quarter. Similarly, net NPA fell to 4.71 per cent from 4.96 per cent.

The bank's management is optimistic about further improvement in the coming quarters. Prashant Kumar, Managing Director and CEO of the bank, told our associate Etinau that the bank has made a good operating profit despite the problems of Kovid-19 and older. "Growth and disbursement of retail and MSME loans has been very good," he said. The bank is currently on the path to recovery and the situation will return to normal, he said.

Provisions on a year-on-year (YoY) basis declined in September quarter earnings, but increased in quarter-on-quarter (QoQ). 9.70 per cent of Net Interest Income (NII) YoY i.e. Rs. 1,973 crore.

Balinga believes that Yes Bank is back on track, but it will take time for the situation to return to normal. “Fortune doesn’t turn overnight,” he said. Investors have to be patient and wait a long time for good performance.

Mishra of Religare Broking said the stock may see a slight rise, but it is doubtful it will survive. Investors should wait for the bank's performance in the second half of this financial year.

Brokerage firm MK Global has advised Yes Bank to sell its shares with a target price of Rs 9. Edelweiss, on the other hand, has kept the stock under review. The brokerage firm says that while capital raising is a thing of the past, it is important to keep an eye on deposit attractiveness and asset quality. The big question is how to focus on development in the next two-three years.