Analysts about Yes Bank Ambareesh Baliga

Analysts about Yes Bank: Ambareesh Baliga

Analysts about Yes Bank: Ambareesh Baliga

Analysts about Yes Bank:

Yesterday (March 16th), in the early morning the share of Yes Bank traded with a gain of 58% up. The stock rally surprised analysts. The bank reported third-quarter results. The company reported losses of over Rs 18,564 crore in the December quarter. The results disappointed, the government declaring a 75% shareholding lock-in for those holding more than 100 bank shares. After the share rise on Monday, everyone shocked. 

However, some analysts said that this as a sucker rally and some other called its just because of speculation. Sucker rally will describe as if any stock falling down it coming backward. That is, the desire of buyers to own a huge declining stock is said to contribute to price increases.

Meanwhile, some banks invested money in Yes Bank. Federal Bank said it had made a commitment Rs 300 crore to invest in its bellowed Yes Bank to subscribe to its 30 crore shares. IDFC First Bank said it preparing to make a Rs 250 crore equity investment to buy 25 crore equity shares in Yes Bank.

ICICI Bank has announced its private lender investing capital equity of Rs 1,000 crore of more than 5%. Axis Bank invests to Rs 600 to buy 60 crore shares at the company, while Rs 1,000 will be added by the HDFC. 

“The interest shown by the banks is amazing. If the Moratorium itself lifted it will also favorable,” said analyst Ambareesh Baliga.

Reconstruction plan:

Besides, A plan for the reconstruction proposed by the RBI to renovate the fund-starved Yes Bank approved by Union Cabinet on Friday. Now the Yes Bank capital increased to Rs 6,200 crore. Finance Minister Nirmala Sitharaman said this news. The plan would include Rs 7,250 crore in a private bank, which driven by crisis, and 49% equity in State Bank of India (SBI). 

In addition, the government decided to lift the moratorium on Yes Bank on March 18th at 6 pm onwards. 

Monday the share of Yes bank traded 58.12% up reached Rs 40.40 on BSE. Most of the investors suggesting that investors should be careful as Yes bank rising up significantly. The Yes bank free float 75% down. If the free float is weak, the stock actively moves up / down depending upon the news.

Baliga said the performance of the Bank for the quarter of December showed that the bad thing was almost over. If the moratorium imposed on bank deposits is lifted, how many customers are with the Bank remains to be seen.


For the December quarter, the bank reported results with a loss of Rs 18,564 crore. But in the same period last year, it reported a Rs 1,000 crore profit. Besides, in September quarter it reported Rs 629 crore loss.

The gross NPAs of the bank rose up to 18.87% in the given time period, up from 2.10% in the fiscal year and 7.39% in the previous quarter.

The net interest income between interest received and interest charged decreased by 60% to Rs 1,064.78 crore year-on-year, with a sequential decrease of 51.23%. Gross Non-Performing Assets (GNPA) amounted to Rs 40,709 crore compared to Rs 17,134 crore. Net NPA 5.97% compared to 4.35% on a quarterly basis.

Other Analysts:  Analysts about Yes Bank

Prabhudas Lilladher, CEO of PMS warned Ajay bodke described it like a sucker rally. Artificially constrict the free float, it happened in such a case. At the end of December, retail holdings increased significantly to about 48%. 75% of the shares locked in for three years. There is no supply now. This gave the speculators a chance depending upon the news, said bodke. 

Others claimed the price could be controlled. “Free float does not rule out manipulation in the stock price of Yes Bank,” KR Choksay Investment Managers MD Deven Choksay said.

Right now the share of Yes Bank trading with a gain of 21.45 points reached 58.55 INR with 57.82% up in NSE. Whereas in BSE, it reached 21.70 points reached 58.80 INR with 58.49% up.

Stock Market March 16th update:

The stock market trading with the bullish trend. The Sensex trading with a gain of 239.41 points reached 31,629.48 level with 0.76% up. Whereas Nifty trading with a gain of 74.10 points reached 9,271.50 level with 0.81% up.

In the border market, S&P BSE Midcap trading with a gain of 47.10 points reached 11,935.71 level with 0.40% up. Whereas Nifty, S&P BSE SmallCap trading with a loss of 42.69 points reached 11,052.50 level with 0.38% down.

Gaining stocks: Yes Bank Limited, Power Grid Corporation of India Limited, Hindustan Unilever Ltd, Coal India Ltd, and Sun Pharmaceutical Industries Limited.

Losing stocks: Zee Entertainment Enterprises Limited, Bharti Infratel Ltd, United Phosphorus Ltd, Bajaj Finserv Ltd, and Kotak Mahindra Bank Ltd.

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