InvestorQ : What could be the bottom for Yes Bank? It has been falling sharply in a daily basis?
shrinidhi Rajan made post

What could be the bottom for Yes Bank? It has been falling sharply in a daily basis?

Answer
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Riya Dwivedi answered.
1 year ago


It is hard to call a bottom because the stock has fallen from a peak of Rs.400 during the year to around Rs.80 currently which is an 80% correction. That is the normal correction that you get to see in a stock, at least not a banking stock unless there are serious asset quality problems. Let us look at this point from the latest quarterly results perspective.

For the quarter ended June 2019, Yes Bank profits plunged by 91% to Rs.113 crore on the back of substantially higher provisioning. As of the June quarter, the gross NPAs of Yes Bank stand at 5.1%, which is the highest among the private sector banks in India? Even the net NPAs sharply rose from 0.59% to 2.91%, which is again an abnormal rise in NPAs. The bank has severely cut down on fresh loans so loan growth also fell from 18.7% to 10%. This is the second quarter under Ravneet Gill when the bank has given disappointing results. Markets are also worried about Yes Bank exposure to Jet, DHFL and other stressed companies in the realty sector.


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