Yes Bank Shares Rise 9% on Monday: These Are The Main Drivers Of The Craze

On Monday, YES Bank shares surged by 9%, hitting a high of Rs 28.50 on the BSE. This was in response to the bank’s impressive financial results for the March quarter. The institution said that its net profit has increased by an astounding 123% year over year to Rs 452 crore.

Superb Financial Outcomes for Q4 of FY23–24
For the March quarter of the fiscal year 2023–24, YES Bank recorded a more than twofold increase in standalone net profit, to Rs 452 crore, from Rs 202.43 crore during the same time the previous year. The main reason for this increase was advantages related to providing.

Important Aspects of YES Bank’s Financial Performance: The bank had a noteworthy 74% increase in net profit for the fiscal year 2023–2024, amounting to Rs 1,251 crore.

Net Interest Income (NIM): NIM decreased to 2.4% from 2.8% as a result of a deficiency in the necessary priority sector lending (PSL) criteria, despite a small 2.3% increase in core net interest income to Rs 2,153 crore.

Strategic Initiatives: In order to close the PSL gap, YES Bank is concentrating on growing NIM and improving its retail assets, especially in loans for used cars and affordable homes.

Loan Growth & Deposit Targets: For FY25, the bank hopes to expand loans by more than 17% and boost deposits by 18.5%, with a concentration on lending to small and mid-market enterprises.

Asset Quality: Although there were new slippages, the bank’s gross non-performing assets (NPA) ratio decreased from 2.2% to 1.7% from the previous year.

Yes Bank’s Strategic Initiatives and Future Outlook
YES Bank has made large expenditures in its technical infrastructure as part of a strategic emphasis on improving its technological capabilities. The bank’s UPI transactions have significantly increased after its recent cooperation with Paytm.

In addition, the bank intends to increase the number of branches in its network from 1,234 to 30 by establishing new branches in the next quarter.

SBI’s YES Bank Stake Sale
In unrelated news, sources in the media indicate that the government has given State Bank of India (SBI) permission to sell its 25.02 percent share in YES Bank. Financial Express reports that prospective purchasers of SBI’s YES Bank share include Saudi Arabia’s national wealth fund, Japanese firms, and Bain Capital.