Yes Bank, one of India’s leading private sector banks, was founded in 2004 by Rana Kapoor and Ashok Kapur. Despite past challenges, the bank has shown remarkable resilience and recovery efforts. In the last five years, its stock has fluctuated significantly, reflecting both challenges and opportunities in its operations. Will Yes Bank continue to recover and deliver impressive returns in the years to come? In this article, we will look at Yes Bank’s growth potential and share target prices for 2025 to 2050.
About Yes Bank
Yes Bank is headquartered in Mumbai, Maharashtra. It is a full-service commercial bank that offers a variety of financial products and services to its clients, including retail banking, corporate banking, investment banking, and digital banking solutions. The bank is noted for its customer-centric approach, creative banking solutions, and focus on technology-driven services that fulfil the needs of people, small businesses, and major enterprises.
Yes Bank Fundamental Analysis
| Stock Name | yes Bank |
|---|---|
| Market Cap | ₹ 54,174 Cr. |
| 52W High | ₹ 32.8 |
| 52W Low | ₹ 17.2 |
| Stock P/E (TTM) | 30.2 |
| Book Value | ₹ 14.6 |
| Dividend Yield | 0 % |
| ROCE | 5.81 % |
| ROE | 3.11 % |
| Face Value | ₹ 2 |
| Share holder | Mar 2023 | Mar 2024 | Sept 2024 |
|---|---|---|---|
| Promoters | 0.00% | 0.00% | 0.00% |
| FIIs | 23.10% | 22.01% | 27.00% |
| DIIs | 37.77% | 41.50% | 38.20% |
| Government | 0.01% | 0.01% | 0.01% |
| Public | 39.10% | 36.47% | 34.78% |
| No. of Shareholders | 50,57,387 | 61,54,888 | 62,47,735 |
Pros of Yes Bank
- Improved Financial Performance: In Q2 FY25, Yes Bank’s net profit more than doubled to ₹553 crore, indicating a positive trend in profitability.
- Asset Quality Enhancement: The bank’s Gross Non-Performing Assets (NPA) ratio has declined over the past four years to 1.73%, and Net NPA to 0.58%, reflecting better credit management.
- Loan Book Growth: Yes Bank reported a year-on-year increase of 12.09% in advances, surpassing its five-year compound annual growth rate (CAGR) of 5.85%, indicating robust lending growth.
- Strong Deposit Growth: The bank’s deposits grew by 22.47% in FY24, demonstrating increased customer confidence and a solid funding base.
- Strategic Institutional Support: Yes Bank received a bailout led by the State Bank of India (SBI), enhancing its stability and credibility in the financial market.
- Focus on Digital Innovation: The bank’s emphasis on digital banking solutions has improved customer experience and operational efficiency, providing a competitive edge in the evolving banking landscape.
Cons of Yes Bank
- Legacy Asset Quality Issues: Yes Bank has faced severe issues with non-performing assets (NPAs), affecting its financial stability and market confidence.
- Dependency on Restructuring Efforts: While the bank has attempted to reform and stabilise, its reliance on these measures raises questions about its long-term viability.
- Limited Competitive Advantage: In a market dominated by larger commercial and public sector banks, Yes Bank may struggle to define itself and grow its market share.
- Stock performance is highly volatile. Yes Bank’s stock has changed significantly in the past, suggesting market concerns about its financial stability.
- Regulatory Oversight: The bank’s history of regulatory action reveals possible governance and risk management flaws that may affect investor trust.
- Interest Rate Risks: Yes Bank’s performance, like that of all banks, is at risk to interest rate movements, which can reduce net interest margins in challenging economic situations.
| Years | Target Price |
|---|---|
| yes Bank Share Price Target 2025 | ₹17.18 to ₹45.5 |
| yes Bank Share Price Target 2026 | ₹65 to ₹120 |
| yes Bank Share Price Target 2027 | ₹127 to ₹165 |
| yes Bank Share Price Target 2028 | ₹170 to ₹220 |
| yes Bank Share Price Target 2029 | ₹245 to ₹310 |
| yes Bank Share Price Target 2030 | ₹320 to ₹345 |
| yes Bank Share Price Target 2035 | ₹475 to ₹775 |
| yes Bank Share Price Target 2040 | ₹985 to ₹1100 |
| yes Bank Share Price Target 2050 | ₹1400 to ₹1800 |
Conclusion
Yes Bank showed resilience and adaptation in the face of previous struggles, while remaining committed to innovation, customer-centric solutions, and technology-driven growth. As one of India’s leading private sector banks, it has amazing long-term value potential. However, its success will be dependent on good management, market conditions, and the ability to react to the changing financial landscape. Investors interested in Yes Bank should thoroughly consider its fundamentals, growth initiatives, and industry trends before making any choices about its future prospects.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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