InvestorQ : What should I do with Yes Bank shares? I had bought the shares at Rs.160 after the stock corrected. But now price has still fallen. What to do?
Niti Shenoi made post

What should I do with Yes Bank shares? I had bought the shares at Rs.160 after the stock corrected. But now price has still fallen. What to do?

Answer
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Archita Jajjoo answered.
1 year ago


Since there are too many open issues with reference to the asset quality it is best to stay away from the bank for the time being. The bank had reported a loss of Rs.1506 crore in the fourth quarter as it made big provisions for its exposures to Jet Airways and IL&FS. That did not go down too well with the markets as it saw this as an indication that there could be more write offs to come in the future. With no clarification coming from the management after that, it has only given rise to further fears on this front. That is something you need to be cautious about.

The stock trades around Rs.133, which is nearly 20% lower than your buy price. Ideally, you should not think too much but just exit the stock because it is hard to say at what level this stock will bottom out. As of now, there is no clarity on the extent of bad loans in their books and that is a slightly uncomfortable situation. Till that is clarified, it is better to stay away from the stock. You can look at other banks like RBL Bank as a safer bet in the banking space.