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Home / Markets / Stock Markets /  Yes Bank share price at 16-month high. Good time to add?
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Yes Bank share price has been in uptrend for last three months, logging around 40 per cent rise in this period. Extending its rally on second straight session, Yes Bank share price today opened with an upside gap and hit intraday high of 17.25 apiece levels on NSE, hitting its April 2021 high of around 17 apiece. In last two sessions, this banking stock has shot up near 5.50 per cent whereas in last six months, Yes Bank stocks have delivered near 30 per cent return to its positional investors.

According to stock market experts, this rise in Yes Bank shares is mainly due to the sale of identified portfolio of stressed assets by the private lender. They said that Yes Bank's board of directors has approved the transfer of bad assets worth 48,000 crore to the private equity firm JC Flowers. They went on to add that Yes Bank shares are trading above 200 DMA (days moving average) and it may go up to 18 and 20 in short term.

Speaking on the reason for rise in Yes Bank shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Yes Bank shares are rising because it board has approved transfer of stressed asset to JC Flowers and the bad asset is worth 48,000 crore. This would help Yes Bank to improve its asset in upcoming quarter. This stresses asset transfer is working as short term sentiment that has fueled positive sentiment towards the private lender's stock. But, Yes Bank has to go a long way and its results in coming quarter would be a worth watch."

Advising Yes Bank shareholders to hold the scrip further, Sumeet Bagadia, Executive Director at Choice Broking said, "Those who have this stock in their portfolio are advised to hold the stock further as it may go up to 18 and 20 apiece levels in short term. However, fresh buying is advisable only above 20. Those who have this stock in their portfolio can hold the counter with a trailing stop loss at 14 apiece levels as 14 is working as good support for the stock in near term."

Advising investors to buy Yes Bank shares above 22 levels, Ravi Singhal, CEO at GCL Securities said, “As of now, all banks are performing admirably. This is beneficial to Yes Bank in this rising interest rate environment. Its three-year lock-in period will also expire in March 2023. New supply will enter the market. So we believe it will remain in 13 to 22 range for some time, but above 22 it may outperform 44 target."

Yes Bank JC Flowers deal

Yes Bank had informed Indian stock market exchanges about transfer of stressed asset transfer to JC flowers citing, "Pursuant to the earlier decision of the Bank to declare JC Flowers Asset Reconstruction Private Limited (“JC Flowers ARC") as the base bidder for proposed sale of an identified stressed loan portfolio of the Bank aggregating to up to Rs. 48,000 Crores (“Identified Portfolio"), the Bank had used such bid of JC Flowers ARC as a base bid (“Base Bid") to conduct a transparent bidding process on Swiss Challenge basis under the aegis of the Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 dated September 24, 2021 for inviting challenger bids for sale of Identified Portfolio."

 

The Swiss Challenge process has now concluded and the Bank not having received any Challenger Bids to the Base Bid, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process.

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

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