Shares of private lender YES Bank continued to tick higher in Wednesday's (November 15) trade, taking the overall gains to 21% in the last five-trading sessions. The scrip zoomed nearly 7% to ₹20.60 during the early trading session as the lender commanded a total market capitalisation of ₹57,431 crore.

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The Mumbai-headquartered lender said that it has received ₹120 crore from the sale of NPA portfolio to J C Flowers Asset Reconstruction (JC Flowers ARC).

"The disclosure pertained to the sale of NPA portfolio to JC Flowers ARC on December 17, 2022," YES Bank said in a regulatory filing.

The stock has gained 18% in the last one month, while it is up as much as 27% in the last six months. Interestingly, the stock has surged about 39% from its 52-week low of ₹14.4.

Despite the mentioned rise, the counter has declined around 8% in 2023 so far.

Tech view

In term of technicals, the stock's 14-day relative strength index (RSI) stood at 79.5, implying that stock may show pullback. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a one-year beta of 0.3, indicating very low volatility on the counter during the period.

YES Bank shares were trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs).

The scrip has an analyst target price of ₹14, as per data from Trendlyne, indicating a potential downside of 30% from the last price of ₹20.

Shiju Koothupalakkal, a Technical Research Analyst at brokerage Prabhudas Lilladher, expects the stock to go till ₹25 levels and then scale to the new target of around ₹40. "The RSI is on the rise and well-placed, indicating strength, with further immense upside potential visible," the analyst said.

YES Bank Q2 results

The bank posted a 47% year-on-year (YoY) rise in net profit at ₹225.21 crore in the September 2023 quarter on lower provisions. It was ₹152.82 crore in the year-ago period. However, on a sequential basis, the bottomline dropped by 34% from ₹343 crore in the June 2023 quarter.

The net interest income (NII) of YES Bank came in at ₹1,925 crore, which was up 3.3% on a yearly comparison.

The lender's asset quality improved in the September quarter as gross non-performing asset (NPA) ratio stood at 2%, while net NPA ratio stood at 0.9%. Provisions and contingencies declined 14.1% year-on-year to ₹500.38 crore in the second quarter of the ongoing fiscal.

(Edited by : C H Unnikrishnan)

First Published:Nov 15, 2023 12:03 PM IST