- Yes Bank reported a net income of 6.12 billion rupees for the third quarter, surpassing the estimate of 5.14 billion rupees and significantly up from 2.31 billion rupees year-on-year.
- The bank’s gross non-performing assets remained stable at 1.6% quarter-on-quarter.
- Provisions for the quarter were 2.59 billion rupees, showing a 13% reduction from the previous quarter and were below the estimated 3.82 billion rupees.
- Operating profit stood at 10.79 billion rupees, marking a 25% increase year-on-year and surpassing the estimated 10.18 billion rupees.
- Interest income totaled 78.3 billion rupees, a 12% rise year-on-year, slightly below the estimate of 79.16 billion rupees.
- Interest expenses increased by 13% year-on-year to 56.06 billion rupees, just under the estimate of 56.69 billion rupees.
- Other income reached 15.12 billion rupees, a 27% increase year-on-year, aligning perfectly with estimates.
- Analyst recommendations included 0 buys, 2 holds, and 10 sells for the bank’s stock.
Yes Bank on Smartkarma
On Smartkarma, the independent investment research network, Hemindra Hazari has provided insights into Yes Bank‘s current situation. In the report titled “Yes Bank’s Retail Therapy Proves Expensive,” Hazari takes a bearish stance on the bank’s progress. The analysis highlights Yes Bank‘s challenges in implementing a retail strategy that has faced difficulties in yielding returns. The report points out structural issues such as low net interest margins and high operating costs that remain unresolved despite efforts by the reconstructed board.
The research by Hemindra Hazari emphasizes the struggles faced by Yes Bank in its retail asset strategy, characterized by low yields, high operating costs, and increasing credit costs. The report underscores the acknowledgment from the bank regarding these challenges. Hazari’s analysis provides valuable insights for investors looking to understand the complexities surrounding Yes Bank‘s efforts to revive its operations amidst a challenging financial landscape.
A look at Yes Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
YES BANK Limited, a banking services provider in India, has been rated using Smartkarma Smart Scores across key factors. While the company shows strength in Value and Growth with scores of 5 and 4 respectively, it lags behind in Dividends, Resilience, and Momentum with scores of 1, 2, and 2. The high Value score suggests that the company is perceived as undervalued compared to its peers, indicating a positive long-term potential. Additionally, the strong Growth score reflects a favorable outlook for the company’s expansion and revenue growth in the future. However, the lower Resilience and Momentum scores may indicate some underlying risks and challenges that YES BANK needs to address for sustained performance.
Looking ahead, the combination of robust Value and Growth scores highlights a promising long-term outlook for YES BANK, pointing towards potential opportunities for investors. The company’s focus on banking services for various industries in India, including food and agribusiness, life sciences, healthcare, biotechnology, and IT, provides a diversified revenue stream. Despite the lower scores in Dividends, Resilience, and Momentum, investors may still find YES BANK an attractive investment option based on its strong Value and Growth prospects, albeit with considerations for the risks associated with its lower scores in other areas.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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