Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for Yes Bank Ltd. indicates a balanced stance on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating reflects a moderate confidence in the company’s prospects, supported by a combination of stable fundamentals and fair valuation, alongside some technical signals that point to cautious optimism. The Mojo Score for Yes Bank currently stands at 61.0, a notable improvement from the previous score of 45, signalling a positive shift in the stock’s overall assessment.
Quality Assessment: Steady Fundamentals
As of 23 February 2026, Yes Bank exhibits average quality metrics. The company has demonstrated strong long-term fundamental strength, with a compound annual growth rate (CAGR) of 24.08% in net profits. This robust growth trajectory underscores the bank’s ability to expand its earnings base consistently over recent years. Additionally, the latest quarterly results show a gross non-performing asset (NPA) ratio at a low 1.50%, reflecting effective asset quality management. The net interest income (NII) for the quarter reached a peak of ₹2,465.60 crores, further highlighting operational efficiency and revenue growth.
Valuation: Fair and Discounted Relative to Peers
The valuation grade for Yes Bank is assessed as fair. Currently, the stock trades at a price-to-book (P/B) ratio of 1.3, which is modestly discounted compared to its peers’ historical averages. This valuation level suggests that the market is pricing in reasonable expectations for the bank’s future earnings potential without excessive optimism. 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 relative to its earnings growth, which may appeal to value-conscious investors.
Financial Trend: Positive Momentum
The financial trend for Yes Bank is positive, supported by recent half-yearly data showing a credit-deposit ratio of 88.01%, the highest recorded for the bank. This ratio reflects the bank’s effective utilisation of deposits to generate loans, a key driver of interest income. Over the past year, the stock has delivered a return of 16.84%, while profits have surged by 48.4%, indicating strong earnings momentum. Institutional investors hold a significant 66.87% stake in the company, with their holdings increasing by 1.11% over the previous quarter. This institutional confidence often signals a favourable outlook from sophisticated market participants who closely analyse company fundamentals.
Technical Outlook: Mildly Bullish Signals
From a technical perspective, Yes Bank’s stock exhibits mildly bullish characteristics. The short-term price movements show a slight decline of 0.43% on the day of analysis, but over longer periods, the stock has demonstrated resilience. For instance, it has gained 8.66% over six months and maintained a positive 16.84% return over the past year. The technical grade reflects a cautious but optimistic market sentiment, suggesting that while the stock may face some volatility, the overall trend remains supportive of holding positions.
Here's How Yes Bank Looks Today
As of 23 February 2026, Yes Bank’s financial and market data present a nuanced picture. The bank’s strong profit growth and improving asset quality provide a solid foundation for future performance. Its valuation metrics indicate that the stock is reasonably priced, offering potential upside without excessive risk. The positive financial trend and institutional backing further reinforce the stock’s stability. Meanwhile, technical indicators suggest that investors should remain watchful but can expect moderate gains if current trends persist.
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Investor Implications and Outlook
For investors, the 'Hold' rating on Yes Bank suggests a prudent approach. The stock’s current fundamentals and valuation imply that it is fairly priced with moderate growth prospects. Investors already holding the stock may consider maintaining their positions to benefit from the bank’s steady profit growth and improving asset quality. However, those looking for aggressive capital appreciation might find the stock’s risk-reward profile less compelling compared to higher-rated alternatives.
It is also important to monitor the bank’s ongoing performance, especially its asset quality metrics and credit growth, as these will be critical drivers of future earnings. The high institutional ownership indicates that professional investors are closely watching these factors, which can provide additional market stability. Technical signals suggest that while short-term fluctuations are possible, the medium-term outlook remains cautiously optimistic.
Summary
In summary, Yes Bank Ltd. is currently rated 'Hold' by MarketsMOJO, reflecting a balanced view of its prospects. The rating was last updated on 25 August 2025, but the analysis here is based on the latest data as of 23 February 2026. The bank’s average quality grade, fair valuation, positive financial trend, and mildly bullish technical outlook combine to support this recommendation. Investors should consider this rating as guidance to maintain existing holdings while carefully monitoring developments that could influence the stock’s future trajectory.
Company Profile and Market Position
Yes Bank Ltd. operates as a midcap player in the private sector banking space. It has steadily built its franchise through a focus on improving asset quality and expanding its loan book. The bank’s recent financial results and market performance indicate a recovery phase with promising growth prospects. Its ability to maintain a credit-deposit ratio near 88% and keep gross NPAs low at 1.50% are positive signs of operational discipline and risk management.
Given the competitive nature of the private banking sector, Yes Bank’s current valuation and growth metrics position it as a stock worth holding for investors seeking moderate exposure to the sector’s growth potential without taking on excessive risk.
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