Shares of YES Bank Ltd experienced a significant surge of over 6% during Wednesday's trading session, making it a top gainer within the banking sector. The stock climbed to Rs 21.80, pushing its market capitalization close to Rs 68,000 crore, following its Tuesday close of Rs 20.48.
The precise reasons for the sudden rally remained unclear, but the session saw a remarkable spike in trading volumes. Data from the NSE indicated that approximately 21.4 crore equity shares of YES Bank, valued at Rs 457.8 crore, were traded by 1 PM on Wednesday. Similarly, on the BSE, 2.34 crore shares worth Rs 50.1 crore exchanged hands, far exceeding the two-week average for BSE trading.
Strong Q4 Results Fuel Investor Interest
The recent surge in YES Bank shares comes on the heels of robust fourth-quarter results for the period ending March 31, 2026. The bank reported a substantial 44.7% year-on-year (YoY) increase in net profit, reaching Rs 1,068.42 crore. Net interest income also saw a healthy growth of 15.9% YoY, climbing to Rs 2,639 crore, with net interest margins (NIMs) improving by 20 basis points YoY to 2.7%.
Operating profit for the quarter rose by 23.1% YoY to Rs 1,618 crore. The bank also demonstrated improved asset quality, with provisions for bad loans falling by 41% YoY to Rs 187 crore. Return on Assets (RoA) reached 1% for Q4. Notably, Japanese financial major SMBC became a significant shareholder in YES Bank during the March 2026 quarter.
Analyst Ratings: Hold, Sell, or Underweight?
Despite the positive Q4 performance and share price movement, brokerage firms offer a mixed outlook on YES Bank stock:
- Emkay Global Financial Services noted improved net interest margins, lower operating costs, and continued provision reversals supporting profitability, with RoA reaching 1% in Q4FY26 and 0.8% for FY26. However, they maintain a 'sell' rating with a target price of Rs 20, citing a suboptimal return profile over the medium term.
- ICICI Securities observed that YES Bank benefited from a declining RIDF drag (now at 6% of assets) and anticipated further reductions. While retail slippages have eased, they remain elevated. ICICI Securities factors in better margins but maintains a 'hold' rating with a target price of Rs 21, citing limited upside drivers.
- Nomura holds a 'neutral' rating on the stock with a target price of Rs 21.
- Morgan Stanley and JP Morgan both maintain an 'underweight' stance, with target prices of Rs 15 and Rs 18, respectively.
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