Yes Bank Shares Rally on Positive NPA Sale Update

Yes Bank Shares Rally on Positive NPA Sale Update

VoM News Desk | November 13, 2023 | 09:29 PM IST | Breaking News | Follow on Google News

Yes Bank Shares Rally on Positive NPA Sale Update

Yes Bank Shares Rally on Positive NPA Sale Update

In Monday’s trading session, Yes Bank shares witnessed a surge in buying interest, bucking the overall weak market trend. The bank’s stock, which opened flat, saw a sudden bull run, touching an intraday high of ₹19.50 on the NSE. This rise represents nearly a 6% increase from its previous close during the Muhurat trading session.

NPA Portfolio Sale Drives Positive Sentiment

The spike in Yes Bank’s share price is attributed to the positive news regarding the sale of its Non-Performing Assets (NPA) portfolio. Yes Bank announced that it had received ₹120 crore from the sale of its NPA portfolio to JC Flowers Asset Reconstruction Company (ARC), drawing the attention of market bulls.

Expert Analysis on Yes Bank’s Stock Movement

Stock market experts, including Avinash Gorakshkar, Head of Research at Profitmart Securities, pointed out that the announcement regarding the receipt of funds from the NPA portfolio sale has positively impacted the share price. The bank had initially disclosed this development in December last year, but the recent confirmation of receiving ₹120 crore from the sale has reignited investor interest.

Future Outlook and Share Price Target

Sumeet Bagadia, Executive Director at Choice Broking, is optimistic about Yes Bank’s stock, advising investors to hold onto their shares with a near-term target of ₹22 per share. He suggests maintaining a stop loss at ₹18 while holding the stock. Bagadia also recommends a ‘buy on dips’ strategy for Yes Bank shares as long as they remain above ₹18.50. He anticipates the shares could rise to ₹25 if they surpass the current hurdle of ₹22 on a closing basis.

Yes Bank’s Official Communication

In its latest exchange filing, Yes Bank confirmed the receipt of ₹120 crore from the sale of its NPS portfolio to JC Flowers ARC, emphasizing the significance of this event in light of the materiality threshold prescribed under the amended Listing Regulations.

VoM News Desk

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