Yes Bank Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction

Yes Bank is one of the leading private sector banks in India, offering a range of banking and financial services to retail, corporate, and institutional customers. The bank has been undergoing a major transformation since 2020, when it faced a liquidity crisis and was rescued by a consortium of lenders led by the State Bank of India. Since then, the bank has been focusing on improving its asset quality, capital adequacy, governance, and profitability. In this article, we’ll look at the Yes Bank Share Price target 2024, 2025,2026, 2027, 2030, and the long term.

In this blog post, we will also analyze the performance, prospects, strengths, weaknesses, opportunities, and threats of Yes Bank shares. We will also look at the financials, risks, and key factors to watch out for in this stock.

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Yes Bank Share Price Target 2024, 2025, 2026, 2027, and 2030

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Yes Bank Share Price Target 2024

The Yes Bank share price target 2024 is projected to range between a minimum of ₹25 and a maximum of ₹30, with an average target of ₹28.

Yes Bank Share Price Target 2025

The Yes Bank share price target 2025 is estimated to vary between a minimum of ₹31 and a maximum of ₹38, with an average target of ₹34.

Yes Bank Share Price Target 2026

The Yes Bank share price target for 2026 is anticipated to fluctuate between a minimum of ₹39 and a maximum of ₹47, with an average target of ₹43.

Yes Bank Share Price Target 2030

The Yes Bank share price target 2030 is projected to be in the range of a minimum of ₹95 and a maximum of ₹114, with an average target of ₹105.

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Yes Bank Share Price Today Live Chart and History

Competitors of Yes Bank Stock

Yes Bank, a prominent player in India’s banking sector, competes with leading banks in both the public and private sectors. Key competitors include Axis Bank, HDFC Bank, and ICICI Bank, each with their unique market strengths and financial metrics. The comparison of these banks provides insightful data on the competitive landscape in which Yes Bank operates.

Key Competitor Analysis:

1. Axis Bank: Positioned as India’s third-largest private sector bank, Axis Bank boasts a market capitalization of ₹2.64 lakh crore (as of December 5, 2023). It provides a comprehensive suite of services, including retail and corporate banking, treasury, investment banking, and wealth management. With a widespread network of 4,594 branches and 12,141 ATMs, Axis Bank demonstrates robust financial health, marked by a PE ratio of 24.6, a PB ratio of 3.06, and an EPS of ₹31.67.
2. HDFC Bank: As India’s largest private sector bank, HDFC Bank’s market capitalization stands at ₹9.05 lakh crore (as of December 5, 2023). Offering a full range of services including retail, wholesale banking, and digital banking, HDFC Bank operates a vast network of 5,608 branches and 16,087 ATMs. Financially, it shows a PE ratio of 28.8, a PB ratio of 4.77, and an EPS of ₹64.37.
3. ICICI Bank: The second-largest private sector bank in India, ICICI Bank, with a market cap of ₹5.11 lakh crore (as of December 5, 2023), offers diverse services like retail and corporate banking, international banking, and insurance. Its network includes 5,288 branches and 15,158 ATMs. The bank’s PE ratio is 23.9, with a PB ratio of 3.24 and an EPS of ₹25.01.

Comparative Financial Ratios:

This table indicates Yes Bank’s unique position with the highest PE ratio, suggesting a higher market valuation relative to its earnings. Conversely, its low PB ratio points to potential undervaluation in terms of book value. The absence of dividend payments and the lowest EPS among its peers reflect on its profitability challenges.

This competitive analysis highlights Yes Bank’s standing amidst its major rivals and offers valuable insights for investors and financial analysts interested in the Indian banking sector’s dynamics.

Consider reading: HDFC Bank Share Price Target

Yes Bank Buy or Sell?

Strengths of Yes Bank Stock

Yes Bank, navigating through recent challenges, has identified significant growth opportunities that could enhance its market performance and stake in the banking sector. These opportunities are pivotal for the bank’s future trajectory and are of keen interest to investors and market analysts.

1. Recovery of Stressed Assets: A remarkable reduction in the gross NPA ratio from 16.8% in March 2020 to 9.84% in September 2023 marks a positive turn for Yes Bank, primarily due to effective strategies like selling bad loans to asset reconstruction companies (ARCs). With a strengthened provision coverage ratio (PCR) at 81.5%, the bank anticipates recovering approximately ₹8,000 crore from stressed assets in upcoming quarters. This potential recovery is expected to significantly boost the bank’s net interest income (NII) and net profit.
2. Capital Infusion and Stake Sale: Yes Bank’s financial robustness was further reinforced through a ₹15,000 crore raise via a follow-on public offer (FPO) in July 2020, elevating its capital adequacy ratio (CAR) to 19.9%. Additionally, the sale of its NPA portfolio to JC Flowers ARC brought in ₹120 crore. Plans to divest stakes in subsidiaries like YES Securities and YES Asset Management indicate a strategic shift towards bolstering core banking operations.
3. Digital Transformation and Customer Acquisition: In an era where digital innovation is crucial, Yes Bank is making significant strides. The introduction of digital products like YES ROBOT, YES PAY, and YES SECURE, and partnerships with fintech giants such as PhonePe and Amazon Pay, underscore its commitment to enhancing customer experience and operational efficiency. This digital push, aligned with the goal of acquiring 25 million new customers by 2025, positions Yes Bank as a forward-thinking player in the digital banking landscape.

These growth strategies, focused on asset recovery, capital fortification, and digital innovation, represent pivotal steps in Yes Bank’s journey towards regaining its position in the banking sector. The bank’s approach to overcoming past obstacles and capitalizing on these opportunities is closely monitored by stakeholders and offers potential for substantial growth and market repositioning.

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Weaknesses of Yes Bank Stock

While Yes Bank has charted a path for growth, it also faces significant challenges that impede its progress and expose it to various risks. Understanding these weaknesses is crucial for stakeholders and investors.

1. Challenges in Credibility and Trust: Yes Bank’s past governance issues and financial irregularities have notably impacted its credibility and trust among stakeholders. The intervention by the Reserve Bank of India (RBI) in March 2020, marked by a moratorium and withdrawal caps, further strained its reputation. Downgrades by rating agencies like Moody’s, CRISIL, and ICRA have increased borrowing costs and affected market perception. While the bank is striving to enhance transparency and compliance, rebuilding its reputation is a long-term endeavor.
2. Exposure to Stressed Sectors: A significant portion of Yes Bank’s loan portfolio is tied to sectors like infrastructure, real estate, and telecom, which are currently experiencing demand slowdowns and regulatory challenges. This exposure has led to increased non-performing assets (NPAs), write-offs, and slippages, impacting the bank’s profitability and capital base. Efforts are underway to mitigate this exposure, but tangible results may take time.
3. Growth and Profitability Concerns: Yes Bank’s growth and profitability metrics lag behind its peers. Operational limitations, competitive pressures, and reputational issues have contributed to a loss in market share and customer base. The bank’s net interest margin (NIM) stands at 2.6%, below the industry average of 3.5%, indicating lower lending profitability. Additionally, a high operating cost to income ratio of 58.4%, compared to the industry average of 50%, reflects legacy issues and restructuring costs.

In summary, Yes Bank’s path to recovery and growth is fraught with challenges, including rebuilding trust, reducing exposure to high-risk sectors, and improving growth and profitability metrics. These aspects are key considerations for market analysts and investors evaluating the bank’s potential in the competitive banking sector.

SWOT Analysis of Yes Bank Stock

A comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Yes Bank offers a balanced view of its current position in the banking sector. This analysis is particularly beneficial for investors, financial analysts, and stakeholders looking to understand the bank’s potential and challenges.

Strengths:

1. Experienced Management: Yes Bank’s management team brings a wealth of experience and stability, essential for navigating the complex banking landscape.
2. Diverse Customer Base: The bank enjoys a diversified and loyal customer base, underpinning its market presence.
3. Technology Platform: Its robust and scalable technology infrastructure supports efficient operations and service delivery.

Weaknesses:

1. Credibility Issues: Yes Bank’s past governance and financial challenges have led to reduced credibility and trust among stakeholders.
2. Sector Exposure: The bank’s significant exposure to stressed sectors like real estate and telecom adds to its financial vulnerabilities.
3. Growth and Profitability: Compared to its peers, Yes Bank shows lower growth and profitability metrics, indicating room for improvement.

Opportunities:

1. Asset Recovery: The potential recovery of stressed assets can significantly improve financial health.
2. Capital Infusion: Raising funds through stake sales and public offers could bolster the bank’s capital adequacy.
3. Digital Innovation: Investing in digital transformation and customer acquisition strategies can open new avenues for growth and competitiveness.

Threats:

1. Regulatory Risks: The bank faces ongoing challenges related to regulatory compliance and legal issues.
2. Market Competition: Intense competition in the banking sector poses risks to market share and profitability.
3. Macroeconomic Factors: External factors like economic conditions and potential pandemic impacts could affect performance.

This SWOT analysis of Yes Bank highlights key areas for strategic focus and risk mitigation. It provides a holistic view of the bank’s internal capabilities and external challenges, crucial for informed decision-making in today’s dynamic financial environment.

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Yes Bank Company Financials

Yes Bank’s financial performance over the past five years can be comprehensively understood through its financial statements and reports. These documents, including balance sheets, income statements, and cash flow statements, are prepared in compliance with Indian Accounting Standards (Ind AS) and RBI guidelines. They offer insights into the bank’s financial health and are critical for investors, analysts, and stakeholders.

Key Financial Highlights of Yes Bank (Past Five Years):

1. Asset Growth: There’s been a noticeable increase in total assets in the last two years, indicating a recovery from the significant drop in 2020.
2. Liability Management: The bank has effectively reduced its total liabilities and expenses, showing improved financial management post-2020.
3. Stable Equity: The total equity has remained relatively stable at around ₹21,000 crore over the past three years.
4. Income and Profitability: A gradual rise in total income and net profit is observed, suggesting a turnaround in the bank’s profitability.
5. Operational Cash Flow: There’s been a positive shift in cash flow from operations, reflecting better operational efficiency.

Summary Table of Yes Bank’s Financials (2019-2023):

This summary provides an overview of Yes Bank’s financial trajectory, highlighting the challenges it faced in 2020 and its subsequent recovery. These insights are invaluable for understanding Yes Bank’s financial stability and prospects.

Risks in the Future for Yes Bank Stock

Looking ahead, Yes Bank’s stock performance and valuation could be influenced by various potential risks. Understanding these risks is crucial for investors and stakeholders to make informed decisions about their investment strategies.

1. Regulatory and Legal Risks:
   • Policy Changes: Yes Bank is subject to risks arising from modifications in RBI policies, compliance with Basel III norms, and adherence to AML and KYC regulations.
   • Legal Challenges: Potential legal actions, including penalties or sanctions related to past and ongoing issues like fraud or insider trading, could impact the bank’s operations and reputation.
   • Compliance Standards: Adherence to evolving taxation laws and corporate governance standards remains a critical concern that could affect profitability.
2. Competitive and Market Risks:
   • Rising Competition: The bank faces intense competition from other banks, fintech companies, and new market entrants offering more attractive products and services.
   • Market Fluctuations: Vulnerability to changes in interest rates, exchange rates, and other market conditions could impact Yes Bank’s financial margins.
   • Stock Volatility: Investor sentiment and market perceptions could lead to fluctuations in the bank’s stock price.
3. Macroeconomic and Pandemic Risks:
   • Economic Slowdown: Global and domestic economic downturns can adversely affect the bank’s business activities and asset quality.
   • Operational Challenges: The pandemic has introduced uncertainties in fiscal and monetary policies, along with potential operational risks such as cyber threats.
   • Consumer Behavior: Shifts in consumer preferences and digital adoption could pose challenges to the bank’s recovery and growth plans.

These potential risks highlight the complex and dynamic environment in which Yes Bank operates. For investors, a keen understanding of these factors is essential to gauge the prospects and stability of Yes Bank’s stock in the fluctuating financial landscape.

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Key things to watch out for Yes Bank Stock

As an investment option characterized by both high risk and potentially high reward, Yes Bank stock demands careful monitoring. Investors should stay vigilant regarding several key aspects that could significantly influence the bank’s performance and stock value.

1. Recovery and Restructuring Efforts:
   • Asset Quality Improvement: Closely monitor how effectively Yes Bank is managing its non-performing assets and overall asset quality.
   • Capital Adequacy: Watch for changes in the bank’s capital structure and efforts to maintain regulatory capital requirements.
   • Profitability Metrics: Keep an eye on the bank’s profitability indicators, including net interest margins and return on assets.
   • Governance Practices: Evaluate the bank’s governance improvements, particularly in transparency and compliance.
2. Stakeholder Response:
   • Regulatory and Rating Agencies: Pay attention to feedback from regulators and rating agencies, which can significantly impact investor confidence and borrowing costs.
   • Investor and Customer Perceptions: Track how investors and customers are responding to Yes Bank’s strategies and market performance.
3. Risk Management:
   • Regulatory and Legal Risks: Stay updated on any potential legal issues or regulatory changes affecting Yes Bank.
   • Market Competitiveness: Assess the bank’s position in the face of increasing competition from other banks and fintech companies.
   • Macroeconomic Factors: Be aware of broader economic conditions, including potential impacts from global and domestic economic shifts and health crises.
4. Growth and Innovation:
   • Digital Transformation: Monitor Yes Bank’s progress in digital banking and technology-driven services.
   • Customer Acquisition and Retention: Evaluate the bank’s effectiveness in attracting and retaining customers.
   • Product and Service Diversification: Look for new product launches and service diversifications that can open new revenue streams.
   • Partnerships and Collaborations: Keep an eye on strategic partnerships that could enhance the bank’s ecosystem and market reach.

In summary, tracking these critical factors will provide investors with a comprehensive understanding of Yes Bank’s stock potential, guiding informed investment decisions in a dynamic banking environment.

Closing Thoughts on Yes Bank Share Price Target 2024, 2025, 2026, 2027, 2030

Yes Bank’s journey as an investment option is marked by complexities and dynamic shifts, requiring investors to engage in thorough and careful analysis. Since the liquidity crisis in 2020 and subsequent intervention by a consortium led by the State Bank of India, Yes Bank has embarked on a substantial transformation. This process involves enhancing asset quality, strengthening capital adequacy, boosting profitability, and refining governance under regulatory and stakeholder oversight.

Simultaneously, the bank’s commitment to digital transformation and innovation is a critical step towards improving customer experiences and operational efficiency. Promising growth opportunities such as the recovery of stressed assets, strategic capital infusions, and digital initiatives offer potential pathways for Yes Bank to enhance its market position.

However, investors must also weigh the various challenges and risks confronting the bank. These include issues related to credibility and trust, exposure to stressed sectors, and comparatively low growth and profitability. Moreover, regulatory and legal concerns, competitive market pressures, and overarching macroeconomic and pandemic-induced uncertainties could significantly impact Yes Bank’s performance and valuation.

Therefore, it is imperative for investors to approach Yes Bank stock with caution and vigilance. Keeping a close watch on key indicators and developments is crucial to navigate the uncertainties and capitalize on the opportunities that may shape Yes Bank’s future trajectory in the banking sector.

FAQs on Yes Bank Share Price Target 2024, 2025, 2026, 2027, 2030

What is Yes Bank Share Price Target 2024?

For the year 2024, Yes Bank’s share price is expected to vary, with a minimum target of ₹25 and a maximum of ₹30, and an average price target set at ₹28.

What is Yes Bank Share Price Target 2025?

The estimated Yes Bank share price target in 2025 ranges from a low of ₹31 to a high of ₹38, with an average projection of ₹34.

What is Yes Bank Share Price Target 2026?

For 2026, the share price target for Yes Bank is expected to range from ₹39 at its lowest to ₹47 at its highest, with an average estimate of ₹43.

What is Yes Bank Share Price Target 2030?

In 2030, the share price target for Yes Bank is forecasted to span from a low of ₹5 to a high of ₹114, averaging around ₹105.

Is Yes Bank safe for long-term investments?

Yes, the Yes Bank is safe for long-term investment. Despite the end of the lock-in period and high volatility, the shares have the potential to reach ₹55 to ₹60 per share in the next three to four years. Investors should not be overly concerned.