Ahead of its Q2 2024 earnings announcement, Yes Bank shares faced heavy selling pressure last week, falling from ₹21.50 to ₹19.50 per share on the NSE—a 9% drop. Analysts expect Yes Bank’s Q2 results to be relatively flat, predicting only slight growth due to moderate deposit increases. Some slippage in loan performance is also anticipated.
Why the Stock Fell
Yes Bank is forecasted to show steady but mild performance for the quarter ending in September, with stable profit margins and average loan growth, according to Manish Chowdhury, Head of Research at StoxBox. Deposit growth should remain solid, although timing issues in income recognition may introduce some volatility. Chowdhury notes that the bank’s consistent earnings and gradual recovery should reassure investors.
Mahesh M Ojha from Hensex Securities highlights Yes Bank’s strong credit growth of 3% quarter-on-quarter and 13% year-on-year, with deposits rising 4.6% QoQ and 18.3% YoY. While asset quality is expected to improve, lower returns from security receipts (SRs) may impact the bank’s ROAA (Return on Average Assets) this quarter.
What to Expect for Yes Bank’s Stock Price
Chandrakant Maske from Spark Capital notes that ₹16.90 serves as a strong support level for Yes Bank shares. If the stock holds above this level, it could reverse upward toward ₹23-₹24.80 by December 2024. Maske suggests investors who hold Yes Bank should maintain a stop-loss at ₹16.90, and new investors with a high-risk appetite could consider a buy-on-dips strategy for similar targets by year-end.
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