Shares of YES Bank hit a fresh 52-week high today amid a rally in the broader indices. YES Bank stock climbed 2.53 per cent today to a fresh high of Rs 18.20 against the previous close of Rs 17.75 on BSE today. The banking stock has surged 38 per cent in three months. YES Bank shares closed at Rs 13.19 on June 9 this year against today’s high of Rs 18.20, translating into a gain of 37.98 per cent during the last three months.
The stock has rallied due to several positive developments during the period. In August, rating agencies CRISIL and India Ratings and Research (Ind-Ra) upgraded YES Bank’s instruments. CRISIL Ratings upgraded the rating on Tier-II bonds (under Basel III) and Infrastructure Bonds to ‘CRISIL A-‘ from ‘CRISIL BBB+’ and revised the outlook to ‘Positive’ from ‘Stable’.
Ind-Ra upgraded YES Bank’s long-term issuer rating to ‘IND A-‘ from ‘IND BBB’ and assigned outlook as ‘Stable’. The Reserve Bank of India has removed its members from the bank’s board, and Ind-Ra stated that the bank’s rebuilding appears to be over as the top management has become generally stable as a result of reconstruction.
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In early August, board of the private lender approved raising of Rs 8,898 crore from funds affiliated with private equity investors Carlyle and Advent International. Both the funds will potentially own 10 per cent each in the private lender.
Reacting to the fundraising news, YES Bank stock climbed 17.71 per cent to Rs 17.88 on August 2. Meanwhile, shares of YES Bank were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages today.
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Stock of YES Bank has gained 60.27 per cent in a year and risen 28.2 per cent in 2022. In a month, the stock has gained 9.62 per cent. Total 250.84 lakh shares of the firm changed hands amounting to a turnover of Rs 44.47 crore on BSE. Market cap of the bank stood at Rs 43,846 crore in the afternoon session today.
Another factor, which has helped the stock move is the encouraging Q1 results of the lender. Yes Bank reported a 50 per cent increase in net profit at Rs 311 crore for June quarter 2022-23 on fall in provisions for bad loans, and healthy income growth. The bank had logged a net profit of Rs 207 crore in the year-ago period. Total income during the quarter rose to Rs 5,916 crore as against Rs 5,394 crore in the same period of 2021-22.
The private sector lender improved on its bad assets with gross non-performing assets (NPAs) declining to 13.45 per cent of gross advances as of June 30, 2022 from 15.60 per cent by June-end 2021. Net NPAs or bad loans too came down to 4.17 per cent from 5.78 per cent.