In the tumultuous landscape of India’s banking sector, one institution stands out for its extraordinary journey of redemption and renewal – Yes Bank. Once plagued by a financial crisis that threatened its very existence, Yes Bank has emerged as a shining example of resilience and recovery. However, the Yes Bank share price underwent severe trouble and failed to meet investors’ expectations, resulting in a massive wipeout of funds from the Indian stock market. In this article, we’ll dive deeper into Yes bank share price prediction, its current market trends and future stock projections to guide you with a strategic investment plan.
Yes Bank: Founding
Yes Bank, founded by Rana Kapoor and the late Ashok Kapoor, is a prominent banking institution in India. Since its inception on November 21, 2003, the bank has grown its presence to approximately 1050 branches across the country. Yes Bank received its certificate of commencement of business on January 21, 2004, and soon ventured into retail banking in 2005 with the launch of the International Gold and Silver debit card in collaboration with MasterCard International. The following year, in 2006, the bank was recognized with the Financial Express Awards for India’s Best Banks.
One of the notable achievements of Yes Bank was being the first institution globally to receive funding through the IFC’s Managed Co-Lending Portfolio Program. Additionally, it became the first Indian bank to raise a loan under the IFC’s A/B loan facility. The bank’s excellence was further recognized when it secured the top position in the Business Today-KPMG Best Banks Annual Survey in 2008.
Yes Bank’s growth and success continued as it received credit rating upgrades from ICRA and CARE for its long-term debt programs in September 2014. In a significant milestone, Yes Bank joined the prestigious 30-share S&P BSE Sensex on December 18, 2017, further cementing its position in the financial market.
Throughout its journey, Yes Bank has also focused on forging strategic partnerships and collaborations. In April 2007, it entered into a tie-up with the Agriculture Insurance Company of India (AIC), showcasing its commitment to promoting agricultural development and financial inclusion. Before moving further, let’s take a look at Yes Bank’s current market details to clarify our Yes Bank share price prediction better.
Yes Bank: Since the Inception
The origins of Yes Bank can be traced back to 1999, when three prominent Indian bankers, Ashok Kapur, Harkirat Singh, and Rana Kapoor, joined forces to establish a non-banking financial enterprise. At that time, Ashok Kapur had served as the national head for ABN Amro Bank, Harkirat Singh as the country head for Deutsche Bank, and Rana Kapoor as the head of corporate finance for ANZ Grindlays Bank. The Dutch-based Rabobank held a significant stake of 75% in the venture, while the three Indian promoters individually owned 25% of the company. Initially, the enterprise operated under a different name, and it was not until 2003 that it was rebranded as Yes Bank.
However, the journey for Yes Bank has not been without challenges. In recent years, the bank faced difficulties in raising capital, resulting in a gradual deterioration of its financial position. This deterioration, in turn, led to potential loan losses and subsequent downgrades by credit rating agencies. These downgrades triggered concerns among investors, leading to the invocation of bond covenants and even withdrawals of deposits by customers. This downward spiral resulted in significant losses for the bank over consecutive quarters.
As a consequence of the bank’s financial struggles, Rana Kapoor, one of the co-founders and former CEO, was relieved of his position. Moreover, Kapoor faced legal troubles as he was arrested in connection with a money laundering case involving INR 466 crore.
The events surrounding Yes Bank’s financial crisis underscored the urgent need for a turnaround and restructuring to salvage the institution. Regulatory intervention became necessary to stabilize the bank and restore trust in its operations. The Reserve Bank of India (RBI) took swift action, implementing a comprehensive plan to address the bank’s issues and ensure its revival.
Under the guidance of the RBI, Yes Bank underwent significant changes to overcome its challenges. A reconstruction plan was put into effect, involving a consortium of financial institutions injecting capital and acquiring a substantial stake in the bank. A new board and leadership team were appointed to steer the bank towards a path of recovery and sustainable growth.
Yes Bank’s Financial Crisis: Turning Point
Banks play a vital role in maintaining the economic stability of a country. They serve as custodians of public deposits and provide essential financial services to individuals and businesses. In this context, the crisis that unfolded at Yes Bank in March 2020 had significant implications, as it was one of the largest private sector banks in India. The failure of a bank, whether it is a public sector or private sector institution, can have far-reaching consequences that affect everyone.
The news of the potential collapse of Yes Bank in March 2020 sent shockwaves throughout the financial system and triggered panic among depositors. Recognizing the gravity of the situation, the Reserve Bank of India (RBI) swiftly intervened to address the crisis. As part of its measures, the RBI superseded the board of directors of Yes Bank for a period of 30 days, assuming direct control to stabilize the bank’s operations and protect the interests of depositors and stakeholders.
According to a 2015 report by UBS, a global financial service company, it was found that Yes Bank’s asset quality was compromised due to loans given to companies that were unlikely to repay the loan amount and had a higher loan amount than their net worth.
Yes Bank’s crisis was further fuelled by its continued lending to major firms and companies such as DHFL, CCD, Essel Group, and Reliance Group of Industries. These corporate entities were unable to repay their loans within the stipulated time frame. Approximately 25% of the loans were extended to non-banking financial companies, real estate firms, and the struggling construction sector, which had been facing difficulties in India over the past few years.
The estimated amount of bad loans for Yes Bank was around Rs. 40,000 crores (Gross NPA). By the end of December 2019, the Gross NPA accounted for approximately 19% of advances, while the Net NPA represented around 6% of the loans. This marked the beginning of a rise in non-performing assets (NPAs) for Yes Bank.
As the loan amount continued to rise rapidly, the rate of withdrawals from Yes Bank also increased. This put a significant burden on the bank’s balance sheet, eventually leading to its gradual collapse.
The Yes Bank crisis triggered panic among the public, resulting in bank-run situations. A bank run occurs when a large number of depositors withdraw their funds within a short period, often due to fear rather than actual insolvency. Yes Bank’s total liabilities amounted to 24,000 crore dollars, with a balance sheet of approximately ₹40 billion (2.85 lakh crore rupees). To bolster its capital base, the bank needed to raise ₹2 billion. These factors contributed to the dire condition of Yes Bank.
State Bank Of India Emerged As A Messiah
Following the Reserve Bank of India’s imposition of a 30-day moratorium on Yes Bank in March 2020, Finance Minister Nirmala Sitharaman announced that the State Bank of India (SBI) would acquire a 49% stake in Yes Bank. However, Chairman Rajnish Kumar clarified that there would be no merger between the two banks.
Once the merger announcement was made, the responsibility to rescue Yes Bank from the crisis fell upon India’s largest bank, SBI.
Chairman Rajnish Kumar emphatically stated that there was no intention of a complete merger between Yes Bank and SBI, as confirmed by the newly appointed administrator on CNBC TV18.
The investment made by SBI was seen as the best solution to address the ongoing situation. Initially, depositors of Yes Bank lacked confidence in the safety of their money. However, they later realized that their funds were secure in the hands of SBI. The survival of Yes Bank became a significant event in the history of banking.
Yes Bank Share Price Prediction: Price History
To get a detailed Yes Bank share value outlook, it is essential for investors to get an idea of Yes Bank stock’s price history to determine its future growth potential. However, it is to be noted that past performance is not an indicator of Yes Bank’s future price points and financial projections.
Yes Bank made its debut on the stock market in July 2005, and during its early years, the share price exhibited a gradual upward trajectory. By the end of 2009, the stock had surged from its initial listing price of around Rs. 12 to approximately Rs. 50, reflecting the bank’s strong growth prospects and investor confidence.
The Yes Bank share price experienced a period of volatility due to a challenging economic environment. The stock witnessed a significant dip, falling to around Rs. 120 in August 2015. However, the bank managed to navigate the turbulent times, and by the end of 2016, the share price had recovered to approximately Rs. 300.
The year 2017 was a pivotal one for Yes Bank, as the stock witnessed a remarkable surge in value. The share price soared to a high of over Rs. 380 in September 2017, driven by robust financial performance, expansion plans, and positive market sentiment. This meteoric rise presented an attractive opportunity for investors, who reaped substantial gains during this period.
The following years proved to be a tumultuous period for Yes Bank. In September 2018, the stock began its downward descent, partly due to concerns surrounding the bank’s asset quality and exposure to certain stressed accounts. The share price witnessed a significant decline, falling to around Rs. 70 by 2019. Additionally, regulatory scrutiny and management changes further added to the uncertainty, impacting investor confidence.
Despite the challenges faced in the previous years, Yes Bank displayed resilience and embarked on a path to recovery in 2020. In March of that year, the bank underwent a significant restructuring process, including a bailout by a consortium of financial institutions. This development acted as a turning point for Yes Bank’s share price, which witnessed a sharp rebound. By November 2020, the stock price stabilized around Rs. 15, reflecting renewed investor optimism.
Following its revival in 2020, Yes Bank continued to demonstrate signs of progress. Throughout 2021 and 2022, the share price exhibited a range-bound trend without dropping below Rs. 20 by the end of 2022. This positive trajectory was fuelled by factors such as improved financial performance, enhanced corporate governance practices, and growing confidence in the bank’s future prospects.
Yes Bank Share Price Prediction: Technical Analysis
Recently, Yes Bank stock has experienced a fleeting bearish trend, which has temporarily halted its momentum. The market has been heavily influenced by the Fed’s recent interest rate hikes, negatively impacting Yes Bank’s share price. However, despite facing critical resistance levels, Yes Bank’s stock has managed to display surprising resilience. A thorough technical analysis of Yes Bank reveals a few bullish indicators, but they are outweighed by the overall bearish sentiment. Investors should exercise caution as the long-term growth strategy for Yes Bank appears uncertain. The current upward trajectory may not be sustainable, raising doubts about Yes Bank’s ability to maintain its status as a top-tier investment choice.
According to TradingView, Yes Bank shares are currently trading at ₹15.65, reflecting a decrease of over 0.3% in the last 24 hours. Our technical evaluation of Yes Bank stocks indicates that the bearish momentum is not over yet, and bears may make a comeback if the Yes Bank stock struggles to gain enough buying pressure near its immediate resistance levels. Examining the daily price chart, Yes Bank shares have found support near the ₹15.15-14.4 level, from which the stock price may try to breach its immediate resistance line. As Yes Bank’s price recently surpassed its EMA50 trend line at ₹16, buyers may gain confidence and open long positions, pushing the stock’s price higher in the coming days before any downward movement emerges. The Balance of Power (BoP) indicator is currently trading in a bearish region zone at 0.4, hinting at a downward correction soon.
To thoroughly analyze the price of Yes Bank shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a decline following selling pressure, and it has dropped below the mid-line and trades near the neutral region of the 44-level, suggesting pressure to push the stock price to ₹14. It is anticipated that Yes Bank’s price will soon attempt to break above its 38.6% Fibonacci level to achieve its short-term bullish goals. If it fails to climb above this Fibonacci region, a downtrend might occur.
As the SMA-14 continues its upward swing near the 51-level, it trades way above the RSI line, potentially accelerating the stock’s upward correction on the price chart. If Yes Bank shares break above the consolidation zone, it can pave the way to the crucial resistance of EMA100 at ₹16.35. A breakout above the strong resistance will drive the share price toward the upper limit of the Bollinger band at ₹17.25.
Conversely, if Yes Bank fails to hold above the critical support level of ₹1, a sudden collapse may occur, resulting in further price declines and causing the Yes Bank share to trade near the Bollinger band’s lower limit of ₹14. If Yes Bank’s price fails to continue a trade above ₹14, it may trigger a more significant bearish downtrend.
Yes Bank Share Price Prediction By BlockchainReporter
Yes Bank Share Price Prediction 2023
Our analysis for Yes Bank’s stock expects a slow increase by the end of 2023, considering its weak fundamentals and investor interest. By 2023, the average trading price of Yes Bank’s shares is anticipated to be ₹20, with a minimum price of ₹16 and a maximum price of ₹26. These predictions take into account the bank’s ongoing efforts to stabilize its operations and improve its financial health, which may lead to cautious optimism among investors.
Yes Bank Share Price Prediction 2024
Moving into 2024, we anticipate a gradual recovery in Yes Bank’s share price. Improved financial performance and regained investor confidence could contribute to a positive trajectory for the bank’s stock. Our prediction for 2024 suggests an average trading price of ₹25, with a minimum price of ₹21 and a maximum price of ₹31.
Yes Bank Share Price Prediction 2025
By 2025, Yes Bank is expected to further consolidate its position and demonstrate continued growth. As the bank executes its strategic plans and benefits from a recovering economy, investor sentiment may strengthen. Our prediction for 2025 indicates an average trading price of ₹30, with a minimum price of ₹26 and a maximum price of ₹36. These projections highlight the potential for Yes Bank to regain its pre-crisis value.
Yes Bank Share Price Prediction 2026
In 2026, we envision Yes Bank’s share price continuing its upward trajectory, driven by improved financials, strategic initiatives, and optimistic market sentiment. Our prediction for 2026 suggests an average trading price of ₹35, with a minimum price of ₹31 and a maximum price of ₹41.
Yes Bank Share Price Prediction 2027
As Yes Bank progresses further, expanding its customer base and enhancing its services, the bank may experience increased demand for its shares. In 2027, our prediction indicates an average trading price of ₹40, with a minimum price of ₹36 and a maximum price of ₹46.
Yes Bank Share Price Prediction 2028
By 2028, Yes Bank could solidify its recovery and establish itself as a formidable force in the banking industry. The bank’s robust financial performance and continued strategic execution might attract a broader investor base. Our prediction for 2028 suggests an average trading price of ₹45, with a minimum price of ₹41 and a maximum price of ₹51.
Yes Bank Share Price Prediction 2029
Looking ahead to 2029, Yes Bank’s share price could witness further appreciation as the bank capitalizes on its newfound strength. Our prediction for 2029 suggests an average trading price of ₹50, with a minimum price of ₹46 and a maximum price of ₹56.
Yes Bank Share Price Prediction 2030
By 2030, Yes Bank is expected to have cemented its position as a leading player in the banking sector, capitalizing on its strengths and delivering value to shareholders. Our prediction for 2030 indicates an average trading price of ₹55, with a minimum price of ₹51 and a maximum price of ₹61.
Yes Bank Share Price Prediction: Industry Experts
According to Finances Rule’s Yes Bank share price prediction, the stock price may attain an average trading price of ₹31, with a minimum price of ₹30 and a maximum price of ₹33 by the end of 2024.
StockIPO’s Yes Bank share price prediction states that investors with a long-term outlook who hold shares in Yes Bank can anticipate promising returns in the foreseeable future due to the bank’s emphasis on providing a greater number of retail loans compared to corporate loans. Yes Bank has set a primary target of ₹85 for 2026, with an expected secondary target of ₹89.
Yes Bank Financial Outlook: Q4-FY23
Recently, Yes Bank revealed its Q4FY23 results, indicating a decline in net profit from ₹367.46 crores to ₹202.43 crores, reflecting a nearly 45% decrease on a year-on-year (YoY) basis. However, compared to the previous quarter (Q3FY23), Yes Bank reported an impressive surge of approximately 293% in net profit, reaching ₹51.52 crores. Yes Bank attributed the dip in net profit to the increasing provisioning but managed to achieve profitability for the second consecutive year, despite this challenge.
Yes Bank demonstrated improvement in its total income, with the private lender reporting a total income of ₹7,298.51 crore in the fourth quarter of the recently concluded fiscal year, compared to ₹5,829.22 crore in the same period of the previous financial year. For the entire FY23, Yes Bank achieved a 19.46% increase in total income, with the Q4FY23 total income reaching ₹26,624.08 crore, compared to ₹22,285.98 crore in FY22.
Conclusion
Yes Bank has emerged as a resilient and adaptive institution, overcoming significant challenges and demonstrating its commitment to stability and growth. Through strategic reforms, strengthened governance, and a renewed focus on risk management, the bank has positioned itself for long-term success in the financial industry. With a solid foundation, robust technological infrastructure, and a customer-centric approach, Yes Bank is well-equipped to navigate the evolving banking sector and capitalize on emerging opportunities.
FAQ
Yes Bank was founded on November 21, 2003, by Rana Kapoor and the late Ashok Kapoor. It received its certificate of commencement of business on January 21, 2004. The bank ventured into retail banking in 2005 and has since grown its presence to approximately 1050 branches across India. Yes Bank has received various accolades and achievements, including being recognized as one of India’s Best Banks in the Financial Express Awards and joining the prestigious 30-share S&P BSE Sensex.
Yes Bank faced difficulties in raising capital, which resulted in a gradual deterioration of its financial position. This deterioration led to potential loan losses and subsequent downgrades by credit rating agencies. The bank’s exposure to stressed accounts, such as DHFL, CCD, Essel Group, and Reliance Group of Industries, further exacerbated the crisis. Regulatory scrutiny, management changes, and concerns over asset quality contributed to a decline in investor confidence.
The Reserve Bank of India (RBI) intervened to stabilize Yes Bank and restore trust in its operations. A reconstruction plan was implemented, which involved a consortium of financial institutions injecting capital and acquiring a substantial stake in the bank. A new board and leadership team were appointed to guide the bank towards recovery and sustainable growth.
Yes Bank’s share price exhibited a gradual upward trajectory after its debut on the stock market in 2005. However, the stock experienced periods of volatility and a significant decline in value due to challenges in the economic environment, concerns over asset quality, and regulatory scrutiny. Following a restructuring process in 2020, the share price stabilized and showed signs of progress. Throughout 2021 and 2022, the stock exhibited a range-bound trend without dropping below Rs. 20 by the end of 2022.
According to the technical analysis, Yes Bank shares have recently experienced a bearish trend but have displayed resilience. The stock may face downward pressure if it struggles to gain buying pressure near its immediate resistance levels. The RSI-14 indicator suggests pressure to push the stock price to Rs. 14. If the stock fails to climb above its Fibonacci region, a downtrend might occur. However, if the stock breaks above the consolidation zone and crucial resistance levels, it may pave the way for further upward movement. It is crucial to exercise caution and monitor the market conditions for Yes Bank shares.
The price predictions for Yes Bank shares are as follows:
- 2023: Average trading price of Rs. 20, with a minimum of Rs. 16 and a maximum of Rs. 26.
- 2024: Average trading price of Rs. 25, with a minimum of Rs. 21 and a maximum of Rs. 31.
- 2025: Average trading price of Rs. 30, with a minimum of Rs. 26 and a maximum of Rs. 36.
- 2026: Average trading price of Rs. 35, with a minimum of Rs. 31 and a maximum of Rs. 41. These predictions take into account the bank’s ongoing efforts to stabilize its operations, improve its financial health, and regain investor confidence. However, it is important to note that these projections are subject to market conditions and various other factors that may impact the share price.
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