YES Bank shares have been making waves within the financial world. The company has been attracting the attention of long-term stock investors due to several positive triggers.
This includes a fundraise, which is likely to boost the banking stocks. Moreover, the company has been strengthening its asset quality and focusing on granularization of loans.
1. Excellent Financial Performance
YES Bank is a private bank in India that offers a wide range of banking and financial services to retail customers. The bank has more than 1,000 branches and 14,000 ATMs throughout the country, and it also has offices in Dubai and Abu Dhabi. The bank is known for its extensive presence in the retail banking sector, offering a variety of deposit and loan products, including savings accounts, fixed deposits, and personal loans.
In the past few years, Yes Bank has been struggling with issues related to poor asset quality and bad debts. These problems caused the Reserve Bank of India to take control of the bank and replace its board in 2020.
YES Bank stock has recently been boosted by better-than-expected quarterly earnings and improved financial performance. However, the company is facing challenges from its debt instruments in the international markets and a possible write-down of AT-1 bonds. Despite these concerns, YES Bank is still a great investment option for long-term investors.
2. Strong Asset Quality
In recent years, Yes Bank has suffered from a steady deterioration in its financial conditions. This was mainly due to non-performing loans and bad debts, and led to the government taking control of the Bank in 2020.
However, the Bank has managed to turn things around and is now able to attract new customers. This has been reflected in the Bank’s credit growth and deposit numbers.
Moody’s has also upgraded the Bank’s long-term foreign currency issuer rating to Ba3 from BCA/Ba2. Additionally, its consolidated liquidity coverage ratio (LCR) has improved to 113 per cent in the July-September quarter as compared to 103.9 percent in the previous quarter.
In addition, the Bank’s gross non-performing loan (GNPL) ratio has declined to 2.2% at the end of March 2023 from 13.9 percent a year ago following the sale of its NPLs to an asset reconstruction company in 2022. Moody’s expects the Bank’s NPL ratio to continue improving as the legacy problem assets are written off and India’s economic momentum supports loan performance. The Bank’s GNPL ratio is well below the banking industry average of 4.4 per cent.
3. Strategic Focus on Digital Banking
YES Bank is one of the fastest-growing private banks in India. In addition to the traditional banking services, it offers a wide range of digital banking solutions to meet the needs of customers across all segments. The bank’s robust digital platform has helped it attract new customers and increase market share.
The bank’s strong focus on digital banking has also contributed to its profitability. Its net interest income rose by 32% year-on-year, while its gross non-performing assets (NPAs) fell by 42%. The bank’s NPA ratio is below the industry average and it is expected to improve further in the coming years.
In addition to these strengths, Yes Bank’s diverse shareholder base is another positive factor for long-term stock investors. The company’s quarterly reports provide valuable insights into its financial performance on a periodic basis. Our website offers premium features that allow investors to carefully analyze these reports using pre-built screening tools. This analysis can help investors understand the company’s growth potential and identify any risks or opportunities. In addition, our website provides downloadable copies of Yes Bank’s annual reports, which are an essential resource for investors looking to evaluate the bank’s long-term viability and investment potential.
4. Lucrative Values and Dividend Yields
Yes Bank has been one of the fastest growing private sector banks in India. The bank is a leading full-service commercial bank and provides financial banking, corporate and financial services, investment banking, wealth management, and treasury risk management solutions to its clients.
The company’s business strategy is to provide high-quality and customer-driven services across a wide range of product offerings. It has a strong presence in the Indian banking system with more than 1,100 branches and 1800 plus ATMs spread across 29 states and 7 union territories.
Additionally, the company offers a wide range of innovative financial products and services to cater to different markets and segments. These include infrastructure and microfinance, corporate and financial services, and treasury risk management.
For long-term stock investors, dividend payments are an important metric to consider when evaluating a company’s profitability and financial stability. By analyzing Yes Bank Ltd’s dividend history and future payout plans with the help of our pre-built screening tools, you can gain valuable insights into the company’s growth potential and recognition in the market.
5. Strong Financial Stability
A recurring factor that has boosted investor confidence in Yes Bank shares is its strong financial stability. The private lender’s non-performing loan ratio improved significantly following the sale of legacy problem assets to an ARC in 2022, and its capital strengthened with the infusion of new funds from private investors under the RBI’s bank recapitalization scheme.
The company’s quarterly results provide long-term stock investors with insights into its financial performance on a periodic basis. By analyzing the company’s revenue, earnings, and expenses, stock investors can identify any significant trends or patterns that may influence its future performance.
YES Bank also provides annual reports on its website, which give investors comprehensive insights into the company’s strategies and growth prospects. These documents include a CEO letter, financial statements, and management discussions. By carefully reviewing these reports, investors can gain a deeper understanding of the company’s potential and assess whether it is worth investing in.