YES Bank shares spiked on Monday on the back of buying boosted by impressive earnings results. However, the current rally will likely see its upside limited by news that state institution SBI intends to sell its stake in the private lender. If SBI proceeds with the plan, it will result in the sale of Rs 5,000-7,000 crore worth of shares, which could potentially dilute the current price. YES bank shares traded at Rs. 27.35, after gaining 4.59 per cent in the intraday trading session at the time of writing. Furthermore, the share price hit 28.55, at some point-the highest since mid-February.
According to its latest earnings report, Yes Bank profits for the fourth quarter of FY 2024 rose from Rs. 202.4 crore to Rs. 452 crores, representing a phenomenal growth rate of 123%. Furthermore, the bank recorded a 95.2 per cent rise in profit from the previous quarter, exceeding analysts’ forecasts.
YES, Bank’s non-interest rose by 56.3 percent to Rs. 1569 crores during the financial year under review. Meanwhile, customer deposits stood at Rs. 266,372, while the value of assets held rose by 14.3% to 405,493 crores. These figures show the bank’s strong financial standing and cement its position as one of India’s leading financial institutions. In addition, Yes Bank’s ability to generate such figure in a high-interest environment points to a high level of efficiency capable of absorbing external shocks. The current rate of 6.50 percent has been in place since June 2023, and the Reserve Bank of India retained the rate in April.
Technical analysis
The momentum on the YES Bank share price favours the buyers to be in control, with the pivot at 26.55. That could enable them to head higher to 28.55. At that level, a continuation of control by the buyers could favour them to break the resistance and potentially test 30.00 in extension. On the other hand, movement below 26.55 will favour the sellers to be in control. That could enable them to head to 24.90, beyond which they could build the momentum to test 23.40.
