Yes Bank Experiences Revision in Its Score Amid Mixed Financial Performance in Q2 FY24-25

Yes Bank, a prominent player in the private banking sector, has recently experienced a revision in its score by MarketsMOJO. This adjustment comes despite the bank's commendable financial performance in the second quarter of FY24-25, where it reported a significant increase in net profit. However, the institution faces ongoing challenges that may impact its long-term growth trajectory.
While Yes Bank has demonstrated an operating profit growth of 21.71% and has consistently delivered positive results for four consecutive quarters, its Net Interest Income growth remains modest at an annual rate of 1.04%. This discrepancy raises concerns about the bank's ability to sustain momentum in a competitive market.

Technical indicators suggest that Yes Bank is currently navigating a bearish range, with metrics such as MACD and Bollinger Bands indicating a weakening trend. Over the past year, the stock has underperformed, generating returns that lag behind the BSE 500 index across various time frames.

On a more positive note, Yes Bank has achieved the highest interest earned at Rs 7,730.49 crore and boasts a low gross NPA of 1.60%. With a return on assets of 0.4 and a price-to-book value of 1.3, the bank is trading at a discount relative to its historical valuations. Additionally, it enjoys robust institutional support, with holdings at 65.4%.

In light of these developments, Yes Bank has been added to MarketsMOJO's list, reflecting the ongoing evaluation of its market position and performance indicators. Investors will be keenly observing how the bank navigates its current challenges while leveraging its strengths in the coming quarters.