Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for Yes Bank Ltd. indicates a balanced view of the stock’s prospects. It suggests that while the stock is not currently a strong buy, it is also not a sell, signalling that investors may consider maintaining their positions without expecting significant near-term gains or losses. This rating reflects a combination of factors including the company’s quality, valuation, financial trend, and technical outlook.
Quality Assessment
As of 11 February 2026, Yes Bank’s quality grade is assessed as average. The bank has demonstrated strong long-term fundamental strength, with a compound annual growth rate (CAGR) of 24.08% in net profits. This robust growth trajectory highlights the bank’s ability to expand its earnings consistently over time. Additionally, the bank’s asset quality remains healthy, with the gross non-performing assets (NPA) ratio at a low 1.50% in the latest quarter, underscoring effective risk management and credit control.
Valuation Perspective
The valuation grade for Yes Bank is considered fair. Currently, the stock trades at a price-to-book (P/B) ratio of 1.3, which is at a discount relative to its peers’ historical averages. This suggests that the stock is reasonably priced, offering value without being overly expensive. The return on assets (ROA) stands at 0.7%, indicating moderate profitability relative to the bank’s asset base. Furthermore, the price/earnings to growth (PEG) ratio is a low 0.4, signalling that the stock’s price growth is favourable compared to its earnings growth, which is attractive for value-conscious investors.
Financial Trend and Performance
The financial grade for Yes Bank is positive, reflecting encouraging recent results and a solid growth trend. As of 11 February 2026, the bank’s net interest income (NII) reached a quarterly high of ₹2,465.60 crores, demonstrating strong core earnings. The credit-deposit ratio for the half-year period stands at 88.01%, indicating efficient utilisation of deposits for lending activities. Over the past year, the stock has delivered a return of 17.66%, while profits have surged by 48.4%, highlighting a favourable earnings momentum that supports the current rating.
Technical Outlook
Technically, Yes Bank’s stock exhibits a mildly bullish trend. Despite some short-term volatility, the stock’s six-month return of +13.59% and one-year return of +17.66% reflect positive investor sentiment. The stock’s price movement suggests a cautious optimism among market participants, consistent with the 'Hold' rating that advises investors to monitor developments closely while maintaining their current holdings.
Institutional Confidence
Institutional investors hold a significant stake in Yes Bank, with 66.87% ownership as of the latest data. This high level of institutional holding is a positive indicator, as these investors typically possess the resources and expertise to analyse company fundamentals thoroughly. Notably, institutional holdings have increased by 1.11% over the previous quarter, signalling growing confidence in the bank’s prospects among professional investors.
Summary of Current Position
In summary, Yes Bank Ltd.’s 'Hold' rating by MarketsMOJO reflects a stock that is fundamentally sound with steady growth prospects, fairly valued relative to its peers, and supported by positive financial trends and technical signals. Investors should view this rating as an indication to maintain their current positions while keeping an eye on future developments that could influence the bank’s trajectory.
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Investor Considerations
For investors, the 'Hold' rating suggests a prudent approach. While the bank’s fundamentals and financial trends are encouraging, the valuation and technical indicators counsel caution against aggressive buying at this stage. The stock’s recent performance, including a one-year return of 17.66%, is commendable but tempered by short-term price fluctuations and market uncertainties. Investors should consider their risk tolerance and investment horizon when deciding on their exposure to Yes Bank.
Sector and Market Context
Operating within the private sector banking space, Yes Bank competes in a dynamic and competitive environment. The bank’s ability to sustain a healthy credit-deposit ratio and maintain low NPAs is critical in this sector. Compared to broader market indices and banking peers, Yes Bank’s current valuation and growth metrics position it as a stable midcap option with moderate upside potential. The stock’s performance should be monitored alongside sectoral trends and macroeconomic factors affecting the banking industry.
Outlook and Future Prospects
Looking ahead, Yes Bank’s prospects hinge on its continued ability to grow profits, manage asset quality, and maintain operational efficiency. The positive financial trend and institutional backing provide a solid foundation, but investors should remain vigilant for any changes in credit conditions or regulatory developments that could impact the bank’s outlook. The 'Hold' rating reflects this balanced view, encouraging investors to stay informed and responsive to evolving market conditions.
Conclusion
In conclusion, Yes Bank Ltd.’s current 'Hold' rating by MarketsMOJO, last updated on 25 August 2025, is supported by a comprehensive analysis of quality, valuation, financial trends, and technical factors as of 11 February 2026. This rating advises investors to maintain their holdings while carefully monitoring the bank’s performance and market developments. The stock’s fair valuation, positive earnings growth, and institutional confidence make it a viable option for investors seeking steady exposure to the private banking sector without taking on excessive risk.
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