Yes Bank Anticipates Positive Q3 Results with Stable Asset Quality

Yes Bank Anticipates Positive Q3 Results with Stable Asset Quality

Yes Bank Anticipates Positive Q3 Results with Stable Asset Quality

Shares of Yes Bank remained flat as investors await the announcement of Q3 results 2024. The stock showed marginal gains in the past week, closing at ₹24.90 on NSE.

Healthy Q3 Expectations

Market experts predict that Yes Bank may reveal a robust performance in Q3FY24. The bank’s asset quality is anticipated to remain stable, attributed to improvements in recoveries over recent quarters. The Sequentially flat SMA book further supports the expectation of stability. Yes Bank’s focus on retail and MSME segments, along with healthy disbursements in Q3FY24, indicates a gradual strengthening of its retail franchise. Analysts foresee a healthy bottom-line growth in Q3FY24, fueled by Asset Reconstruction Companies (ARCs) submitting bids for two NPA loan books.

Profit Surge and Core Revenue Growth

Estimates suggest a significant year-on-year increase of 705.6% in net profit, reaching Rs. 415.1 crore, showcasing a remarkable turnaround for Yes Bank. The expected 4.5% YoY increase in Net Interest Income (NII) to Rs. 2,059 crore and a 5.3% rise from the previous quarter signal steady growth in the bank’s core revenue-generating activities. Though Pre Provision Operating Profit (PPOP) may experience a YoY decline of 6.6%, the QoQ increase of 2.7% could offset concerns.

Outlook and Technical Analysis

Yes Bank’s share price outlook suggests an uptrend from the ₹16 zone in the last three months. With higher low formations on the daily chart, the stock is currently consolidating, finding support at ₹23.70 levels. A decisive breach above ₹25.70 to ₹26 zone is seen as crucial for confirming a breakout, with potential targets at ₹28.50 and ₹31 levels.

Post-Results Market Reaction

The market’s response to Yes Bank’s Q3 results will depend on how closely projections align with reported figures and the bank’s guidance for future quarters. Investors and analysts will closely observe the post-results conference for insights into the bank’s strategic direction and operational focus areas.

Board Meeting Date

Yes Bank’s board meeting to discuss and approve the Unaudited Standalone and Consolidated Financial Results for Q3 and nine months ending December 31, 2023, is scheduled for Saturday, January 27, 2024.