Shares of YES Bank Ltd experienced a notable rebound on Monday, defying a significant tax order from Maharashtra authorities. The private sector lender's stock opened lower but quickly recovered, closing near its 52-week high.
GST Demand and Bank's Response
YES Bank confirmed in a regulatory filing on Saturday, June 6, that it received an order from the Maharashtra Goods and Services Tax (GST) department's appellate authority. This order confirms a tax demand and penalty totaling Rs 63.27 crore for the period between July 2017 and June 2018. The amount comprises Rs 31.63 crore in GST dues and an equivalent penalty, with applicable interest also payable.
The bank clarified that this appellate order, received on June 5, does not introduce any new or additional demand but upholds an earlier Order-in-Original issued in November 2024. YES Bank stated its belief in having adequate factual and legal grounds to support its position and does not anticipate any material impact on its financial condition or operations due to the order. The lender intends to pursue all available legal remedies, including filing an appeal against the appellate authority's decision within the stipulated timelines.
Stock Performance and Market Outlook
Despite the GST notice, YES Bank shares demonstrated resilience. The stock, which hit a 52-week low of Rs 17.19 on March 30, 2026, has since surged by nearly 37%. On Monday, it opened almost 2% lower at Rs 22.86 but rebounded close to 3% from its day's low to Rs 23.54, pushing its total market capitalization close to Rs 74,000 crore. The stock is currently marginally below its 52-week high of Rs 24.30, recorded in October 2025, and is up 10% year-to-date for 2026.
Recent Financial Highlights
For the March 2026 quarter, YES Bank reported strong financial results:
- Net profit jumped 44.7% year-on-year (YoY) to Rs 738 crore.
- Net Interest Income (NII) rose 15.9% YoY to Rs 2,638 crore.
- Net Interest Margins (NIMs) improved by 20 basis points to 2.7%.
- Asset quality showed improvement at both net and gross levels.
- The Mumbai-based lender achieved a 1% Return on Assets (RoA) mark.
Analyst Ratings and Target Prices
Brokerage firms have offered varied outlooks on YES Bank shares:
- Sell Rating: Investec (Target Price: Rs 15), Citi (Target Price: Rs 19.50), Kotak Institutional Equities (Target Price: Rs 19), Anand Rathi (Target Price: Rs 19), and JM Financial (Target Price: Rs 18).
- Buy Rating: Axis Capital (Target Price: Rs 28).
- Neutral/Hold Rating: Nomura (Neutral, Target Price: Rs 21), ICICI Securities (Hold, Target Price: Rs 21).