Yes Bank share price recovered modestly in 2023 as investors focused on the company’s turnaround. After dropping to ₹14.40 in March, the stock jumped by over 48% to over ₹21. Still, the shares remains sharply below their all-time high. It has dropped by more than 92% from its 2019 high of over ₹282.
Yes Bank vs peers
Slow recovery continuesYes Bank stock price underperformed other Indian banks like State Bank of India (SBI), ICICI, and HDFC. For the year, the stock was barely moved while these other companies rose by more than 4%.
This was an important year for Yes Bank as the management continued to engineer a turnaround for a company that was on the verge of collapse in 2020.
As part of this turnaround, Yes Bank raised cash from Advent International and Carlyle, two giant Wall Street private equity companies. It also created a bad bank with its most toxic loans and sold it to JC Flowers in a bid to clean its balance sheet.
The other important event in 2023 was in June when the company announced plans to raise $305 million through debt securities. Additionally, the three-year lock-up period expired in March, allowing big Indian banks to sell their stake in the company.
Most importantly, Yes Bank returned to profitability after improving its balance sheet. In October, the company reported a 47% increase in its quarterly profit to 2.25 billion rupees or $27.1 million. Also, the company’s deposits jumped to INR 219,369 crs, up by over 13% YoY.
Its profits rose as the company’s provisions for bad credit dropped to 5 billion from 5.83 billion a year earlier. It also benefited from the relatively higher interest rates. The closely watched net interest income (NII) came in at 19.25 billion rupees. Like other central banks, the RBI has pushed rates to 6.50%, the highest level in years.
Yes Bank share price forecast
Turning to the daily chart, we see that the Yes Bank stock price has been in an overall uptrend after bottoming at ₹10.50 in 2021 and peaked at ₹24.7 in December 2022. The stock retreated in the first quarter of 2023 as traders waited for the lock-up period expiration in March.
It has now bounced back and is comfortably above the 50-day and 25-day Exponential Moving Averages (EMA). It has also moved slightly below the 23.6% Fibonacci Retracement level.
Therefore, the short-term outlook for the stock is bullish, with the next point to watch being at ₹23, its highest point in December.
Still, in the long term, I prefer investing in other big Indian banks like ICICI, HDFC, and Axis Bank.
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