Yes Bank Shares Rally 6% On Receiving Rs 120 Cr From Sale of NPA Portfolio To JC Flowers ARC

Wednesday's bounce in YES Bank Ltd. shares continued as the corporation's stock climbed by almost 6% during the early trading session. With a market valuation of about Rs 57 Cr, YES Bank's shares saw an intraday high of Rs 20.62 on Wednesday, up more than 6% from the previous trading session. Following YES Bank's announcement that it received Rs 120 crore from the sale of its NPA portfolio to JC Flowers ARC, the stock price saw a surge.

"This is with reference to our earlier disclosure pertaining to Sale of NPA Portfolio to JC Flowers ARC on December 17, 2022. In this regard, the Bank would like to inform that it has received a redemption amounting to ~INR 120 crores from a single trust in the Security Receipts Portfolio.

Since the net amount (redemption quantum, in excess of the underlying carrying value of the trust), is more than the materiality threshold as prescribed under the amended Listing Regulations, the said event, is being hereby disclosed under Regulations 30 of Listing Regulations," said Yes Bank in a stock exchange filing.

In Q2FY24, the company's net profit jumped by 48% YoY to Rs 225.21 Cr from Rs 152.82 Cr in Q2FY23 being reported on a standalone basis. In comparison to the Rs 6348.53 Cr recorded in the same quarter last year, the bank's net income for the reported quarter was Rs 7920.68 Cr.

The net interest income for the quarter ended September 30, 2023, was Rs 1,925 crore, a 3% YoY fall from Q2FY23. Net interest income (NII) for the bank in Q2FY24 was Rs 1,925.1 crore, down 3.3% from Rs 1,991.4 crore in Q2FY23. Yes Bank's operating profit dropped 2.3% year on year to Rs 772 crore.

Yes Bank Share Price Target

Deven Mehata-Equity Research Analyst at Choice Broking said, "YESBANK, currently trading at 19.40 levels, has exhibited a notable rebound in the past five days, marking a 15% increase from 16.75 levels. The stock benefits from a robust support zone within the range of 16.75 - 17 levels, closely aligned with key moving averages (20, 50, and 200 Day EMA). This convergence enhances the stock's stability and reinforces its potential for an upward movement. Presently, the stock is trading above all the mentioned important moving averages, signalling strength in its current trend."

"The Relative Strength Index (RSI), a momentum indicator, has rebounded to around 79 levels, indicating a recent surge in positive momentum. A minor resistance is noted near 20.50 levels. If the stock successfully surpasses this resistance, it may advance towards the next resistance level at 22.40. This potential upward movement provides an opportunity for investors. For those holding the stock from lower levels, booking partial profits at the current market price is a prudent strategy. Additionally, trailing stop-loss orders can be implemented to protect gains and allow for further upside potential," the analyst further added.

Disclaimer

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