Home / Markets / Stock Markets /  IDFC First Bank near year high, Yes Bank jumps. Why banking shares are surging today

After the sharing of Q2FY23 business update, shares of Yes Bank and IDFC First Bank today surged with sizeable gains in early morning deals. IDFC First Bank share price today opened with an upside gap and went on to hit intraday high of 52.30 apiece, almost close to its 52-week high of 53.75 on NSE. The private lender stock logged more than 6 per cent intraday gain within a few minutes of stock market's opening bell. Similarly, Yes Bank share price today opened upside and went on to hit intraday high of 15.85 apiece on NSE, logging near 2 per cent rise in early morning session on Tuesday.

Upbeat quarterly updates from banks lifted the Nifty Bank index by 2.5%.  IndusInd Bank shares rose 5% after it said second-quarter net advances rose 18% year on year.

According to stock market observers, the Q2FY23 business updates from both the private lenders is quite positive. They said that banking space is already buzzing due to hawkish interest rate regime. They advised shareholders of both banks to hold the counters.

Speaking on Yes Bank and IDFC First Bank share price outlook, Ravi Singhal, CEO at GCL Securities said, "Both banks have released their Q2FY2022-23 business updates. Market is expecting improvement in their margins and asset quality as interest rates are rising as well. But, both the stocks are trading close to its immediate hurdle. So, shareholders of these banks are advised to hold the stock while fresh investors can wait for either breakout or profit taking in these counters." Ravi Singhal of GCL Securities said that Yes Bank and IDFC First Bank has reported stellar YoY jump in its deposits and loans and advances.

Yes Bank Q2FY23 business update

In Q2FY23 business update shared with Indian bourses, Yes Bank has informed that its Loans & Advances have surged 11.60 per cent in YoY and 3.50 per cent in QoQ time. Similarly, Yes Bank has registered 13.20 per cent YoY jump in deposits whereas it registered 3.50 per cent rise in deposits in QoQ time.


IDFC First Bank Q2FY23 business update

As per the business update shared by IDFC First Bank with Indian exchanges, the private lenders funded assets grew 24.80 per cent in YoY time while it shot up 5.60 per cent in QoQ time. IDFC Bank reported that its Customer Deposits grew 35.90 per cent YoY whereas it logged 10.80 per cent rise in Customer Deposits on QoQ basis.

Yes Bank vs IDFC First Bank

Sharing his views on Yes Bank and IDFC First Bank shares in short term perspective, Sumeet Bagadia, Executive Director at Choice Broking said, "One can buy IDFC First Bank shares at current levels for short term target of 58 to 60 apiece levels. However, one must maintain stop loss at 47 levels. Yes Bank shares can be bought at current levels for short term target of 20 to 22 maintaining stop loss at 13 apiece levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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