Yes Bank is a leading private sector bank in India that is known for its comprehensive, customer-centric financial products and services like personal loans, fixed deposits, internet banking, investment banking, et cetera.
*Note: Prices that are specified above is based on INR
YES Bank Historical Share Price (NSE)
Yes Bank’s total market cap, as of February 2018, is more than Rs. 74,000 crore.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Yes Bank Limited reported its total income to be at Rs.8,272.18 crore. With respect to the total income declared for the same period last year, this marks an increase of a little over Rs.2,000 crore.
- Considering the net interest income, it grew by 22.7% y-o-y to Rs.2,219 crore whereas non-interest income recorded a growth of 49.6% y-o-y.
- Owing to this significant growth in income, the company’s net profit also registered a healthy growth of 30.5% y-o-y to Rs.1,260.4 crore. Advances for the quarter also grew by 53% y-o-y across all operating segments like business, retail, corporate, and MSME.
- Provisions and contingencies for the period were reported to be at Rs.625.7 crore as against Rs.285.7 crore reported for the same period, last year.
- Considering the asset quality of the bank, its Gross Non-Performing Assets (GNPA) stood at 1.31% whereas Net NPA stood at 0.59%. The total assets book witnessed a steady decline in the quarter.
- For the year ended on March 31, 2018, Yes Bank Limited disclosed its net interest income to be at Rs.7,737.1 crore - an increase of 33.5% y-o-y. Its non-interest income also registered a healthy growth of 25.7% y-o-y to Rs.5,223.8 crore.
- Driven by an impressive performance, the company’s net profit grew by 26.9% with respect to the profit stated for the previous fiscal year. The net profit after tax for the FY18 was reported to be Rs.4,224.6 crore.
- Considering the advances for the year, they grew by 53.9% y-o-y across corporate, retail, and MSME segments.
- Over the course of the fiscal year, the bank’s asset quality has also registered a decent improvement. Its Gross NPA improved from 1.72% to 1.28% q-o-q while Net NPA improved from 0.93% to 0.64% sequentially.
- For the year ended, the consolidated basic earnings per share was stated to be Rs.18.46 as against an EPS of Rs.15.82 reported for the previous fiscal year. The return on equity (RoE) for the year stood at 17.7%. The board also recommended a dividend of Rs.2.7 per share.
- In the recently released report for the third quarter of the financial year 2017-18, Yes Bank reported a healthy increase in advances and balance sheet. The respective numbers, as of the end of the third quarter are more than Rs.1.5 lakh crore and Rs.2.5 lakh crore.
- Net Interest Income has also grown remarkably over the last quarter, with the amount standing at Rs.1,888.8 crore - a year-over-year increase of more than 25%. Consequently, Yes Bank’s profit after tax also grew to Rs.1,077 crore during the same term in contrast to Rs.882.6 crore in Q3 FY17.
- The CASA (Current and Savings Account) ratio of Yes Bank for the Q3 FY18 is 38% which, on a long-term basis, translates into a y-o-y growth of 48%.
- Furthermore, the asset quality of the bank continued to be resilient to harsh conditions. Gross NPA (Non-Performing Asset) was recorded to be at 1.72% whereas Net NPA was 0.93% for the same quarter.
- On January 2, 2018, the opening stock price of Yes Bank Limited was Rs.313.40 on the National Stock Exchange. Over the course of January, the scrip appreciated by roughly 15% to cross the Rs.360 mark. However, the turbulence in the international markets soon plagued this scrip and consequently, the shares started a bearish trend towards the end of the month.
- Through the course of February and March, the shares lost more than 30% and they descended into the Rs.200 region. In the final week of March, the shares hit their 52-week low at Rs.285 on the NSE. The closing price on March 30 was Rs.304.85.
- In April, the share price of Yes Bank Limited recovered and the stocks recuperated their previous losses. The scrip ascended back to its previous levels at Rs.350, although they failed to find a steady heading at those levels. Through most of May and June, the shares were seen trading hands at levels varying from Rs.330 - Rs.340. In June, the company declared a final dividend of 135%.
- It wasn’t until July that the prices soared once again to touch the Rs.380 mark. The scrip gained a little over 17% in two weeks. However, throughout the second half of July and most of August, the shares were volatile. Nonetheless, they maintained their bearings at levels above Rs.350.
- In the final week of August, however, the shares plunged sharply and lost a little over 10%. The closing price at the end of the month was Rs.343.50.
Yes Bank Stock Returns in 2016 and 2017
- Yes Bank stocks at the start of 2016 were being traded at around Rs.139 on NSE and BSE. The lender began the year with the allotment of equity shares.
- Following the release of Q3 FY16 results, the stock price of Yes Bank moved up by more than 9%. This was due to the massive surge in net profit. Other events like the acquisition of the stake in liAS did well to boost investor confidence.
- By early April of 2016, Yes Bank share price had crossed Rs.160. When the Q4 results were announced later that month, it led to the stock price touch Rs.190 mark during day trading as a result of an increase in net profit.
- Throughout the months of May and June, the stock price of Yes Bank moved up gradually on NSE and BSE. This surge was fuelled by the bank’s efforts in becoming a high-quality financial institution in India. In addition to this, 100% dividend was announced in May 2016, followed by the release of regular updates by the lender. By early July, Yes Bank stocks were being traded for more than Rs.200, driven by the anticipating of Q1 FY17 results.
- The announcement of Q1 results in late July drove the stock price to touch Rs.240. Moreover, around the same time, the bank also got the approval for its mutual funds and asset management business.
- By early September, it appeared that the Yes Bank share price will soon cross Rs.300, but by the middle of the month, the stocks had lost more than 6%. This dive was mainly because of the bank’s postponement of plans to raise funds via QIP (Qualified Institutional Placement).
- However, the share price didn’t suffer drastically. Owing to clarifications, a strong Q2 FY17, and Yes Bank’s plan to raise funds via the issue of green infrastructure bonds, the price remained close to Rs.250 through the months of October and early November.
- The shares did suffer a bit post demonetisation, but they managed to keep themselves above the Rs.200 mark. By the end of the year, the shares were being traded at around Rs.220 - a significant increase from the beginning of the year.
- Yes Bank welcomed the new year with the implementation of multi-nodal blockchain solution in India. This, followed by other events like partnering up with Gupshup and the upcoming Q3 FY17 results, once again took the share price close to Rs.250.
- Towards the end of the month, the stock price was climbing steadily on the back of recognitions, developments and innovations. Healthy numbers reported for the third quarter of FY17 also played a part in taking the stock price close to Rs.290 by early February.
- By mid-March, Yes Bank shares were being traded at around Rs.300 on NSE and BSE. One of the factors that led to this increase was the growing popularity of the bank, which was evident when it received the ‘Best Social Bank’ award at a banking summit. The lender’s plans to raise funds also added to the rally.
- The trend continued in the month of April as well. However, by mid-May, the stock price had once again gone below Rs.300, which may have been driven by the change in the directorate. For the next couple of months, the stock price hovered around the same limit.
- The stock price soared up at the end of July when Q1 FY18 results were announced. The allotment of ESOP, followed by a net increase in profit for the first quarter, intrigued many investors. As a result, the share price of Yes Bank crossed Rs.350 towards the end of the month.
- In August and September 2017, the stock price tried to stabilise around Rs.350. Regular updates and consistent growth helped the investors stay confident.
- However, at the end of October, the share price plummeted dramatically owing to the RBI imposing a penalty of Rs.6 crore on Yes Bank. Nonetheless, the fall was not that severe and the stock price once again found itself close to Rs.300 benchmark. This was the case even at the end of the year, when it was announced that Yes Bank will join the S&P BSE SENSEX index. The shares ended the year at around Rs.310.
Should you invest in Yes Bank?
- The Indian banking system is set to become the fourth largest system in the world over the course of the next decade. As a result, we are quite likely to see private sector banks forming a significant chunk of this system. Yes Bank is one of the fastest growing banks in the private sector and in just 15 years since its formation, it has become the fourth largest private bank in the country. The bank’s vision and mission are helping it gain a tremendous amount of momentum in terms of investments and popularity.
- The bank is geared towards sustainability development and green energy, as evident from the release of green infrastructure bonds. As mentioned earlier, Yes Bank is highly customer-centric in contrast to favouring big industrial companies. Yes Bank has also been recognised for its efforts by several reputed organisations in the world.
- Financially speaking, the financial institution has been reporting profits like clockwork. The CASA ratio is improving by the quarter and its balance sheet has already crossed Rs.2.5 lakh crore. Furthermore, the management’s focus is to control the asset quality and by the looks of it, it has done a remarkable job. Gross NPA count for the third quarter FY18 is just 1.72%, in contrast to the 10.35% reported by the State Bank of India for the same term. This, coupled with a high CASA ratio of 38%, ensures that the bank’s revenue stream is strong.
- Yes Bank’s stock price over the course of last five years has increased by thrice as much. While investing now may seem like a good idea, many experts believe that the stock will price correct further, thus leading to a more favourable point of entry. Alternately, one can also look at mutual funds which have Yes Bank holdings. To surmise, if you are looking to invest in the Indian banking sector, Yes Bank is among the top choices.
Yes Bank is an Indian private sector bank that was founded in 2004 by Rana Kapoor and Ashok Kapur. In just 14 years since its inception, the bank has moved on to become the fourth largest private bank in the country. This tremendous accomplishment has been achieved primarily due to Yes Bank’s vision to provide high-quality, customer-driven services. The bank is present in 29 states and 7 Union Territories through more than 600 branches and 3,500 plus ATMs and aims at becoming the ‘Best Quality Bank of the World in India’ by the year 2020.
Yes Bank’s main area of expertise comprises corporate and institutional banking, financial banking, retail banking, wealth management, et cetera. It offers a variety of financial products like personal loan, credit cards, and home loan. Furthermore, Yes Bank has done well to promote the renewable energy sector, especially with the release of green bonds to finance renewable energy projects. It is also the only Indian bank to have been awarded the Greenfield Bank license by the Reserve Bank of India (RBI) in the last decade.
History of the Company
Yes Bank Limited was formed in November 2003 by Rana Kapoor, and was granted the banking license by the RBI in May 2004. Later that year, the company also commenced its corporate and business banking services. By the financial year 2005-06, the bank completed one full year of operations during which time, it made its first public offering of equity shares. 2007 proved to be a landmark year for the bank as it not only launched its international banking services, but it was also selected as a founding member of Community of Global Growth Companies at the WEF, Geneva. In 2010, Yes Bank was ranked as India’s leading mid-sized bank.
Over the years, the bank has reported healthy numbers and owing to its impeccable services and vision, it has been honoured with several awards. Some of these are the Best Managed Bank in India (2011-2013) awarded by the Asian Banker, Sustainable Bank of the Year for the Asia-Pacific region by FT Sustainable Finance Awards, 2011, and Fastest Growing Bank award at the World Best Bank Awards in 2009.
Rana Kapoor - Founder, Managing Director and Chief Executive Officer
Mr. Kapoor started his journey at the Bank of America in 1980, when he joined as a management trainee. He worked for the company for a little over 16 years, and during the time, he honed his skills superbly to manage corporate, financial, and government institution clients. He followed this with a brief stint at ADZ Grindlays after which, he decided to establish his own joint ventures.
This led to the formation of Yes Bank in 2003 and the rest, as they say, is history. Mr. Kapoor’s progressive mindset and his vision to offer high-quality banking products to the customers has produced commendable results from the perspective of business and finance, as evident in the financial reports published over the years.
He has been awarded a plethora of titles, including the Leading Banker of the Decade by the Indian Chamber of Commerce and the CEO of the Year at SABRE Asia Pacific Awards in 2016.
He is an alumnus of University of Delhi, where he got a Bachelor’s degree in Economics in 1977. Later, he also got an MBA degree from the Rutgers’ University in the United States.
Yes Bank Limited Listing and Indices
Yes Bank Limited is listed on the NSE and BSE, where its stocks can be traded. It also forms a part of two of the most important market indices in India - SENSEX and NIFTY. It is one of the key indicators of the health of private sector banks in India.
In addition to these two indices, Yes Bank Limited can also be found on NIFTY 200, NIFTY 500, S&P BSE 100, S&P BSE 500, and many more.
Yes Bank Limited, Nehru Center,
9th Floor, Discovery of India,
Dr. A.B Road, Worli,
Mumbai - 400018, India
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