Yes Bank Shares Volatile As Brokerage Sees 29% Downside Ahead

Yes Bank‘s share price was volatile on Thursday morning after a global brokerage firm took a cautious stance on the troubled bank.

What Happened: Nomura has maintained a “neutral” rating on Yes Bank, with a target price of ₹17. The target indicates a downside of around 29% from the stock’s last closing price of ₹23.93. Analysts at Nomura said the June quarter update indicated muted loan growth and a sequential decline in deposits.

The lender’s current account savings account (CASA) ratio declined by 1% quarter on quarter but showed a strong year-on-year growth of 26%. The CASA ratio decreased by 17 basis points quarter on quarter to 30.7%.

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Nomura expects Yes Bank to deliver a return on assets of 0.5% in FY25 and 0.8% in FY26, while return on equity is projected to be 4.5% in FY25 and 7.5% in FY26.

The brokerage said that while the bank’s return profile is improving, it still remains lower than its peers. Nomura believes that the book value per share already captures the positive aspects of the private bank.

The bank is set to declare its quarterly results on July 20.

Price Action: Yes Bank’s share price was down 0.084% to trade at ₹23.91 when the markets opened on Thursday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.