YES Bank re-enters top-100 most valued firms list

Latest Analysis
15 Dec 2022

Yes Bank broke it is winning streak today as the stock declined over 5% in early hours today. Recently the stock had been on a rising spree as the stock jumped 37% in a matter of 4 days!! The share began surging on 9th December when the share grew 11% in a single session! But why is the stock surging? 

  • The company recently moved the NCLT to initiate a corporate insolvency resolution process against Digital Ventures Pvt. Ltd., a wholly owned subsidiary of Zee Learn, which the bank claims has defaulted on loan repayments. 
  • The private lender was selected as on of 4 banks chosen for the pilot program of the RBI's e-Rupee, which bolstered interest in the bank's future prospects.
  • Some analysts also suggest that the recent rally could be on account of the impressive performance by Bank Nifty, which has renewed the interest of investors in Bank Nifty, which has been touching new highs and currently trades over 44,000.
  • The biggest contributor to the upside rally is the recent approval by the RBI for the acquisition of 9.99% stake in the bank by Carlyle Group and Advent International. 


This translated to a fundraise of over Rs 8,000 crores for the bank in exchange of 3.69 billion shares and 2.56 billion warrants which are convertible into one share each. This will be one of the largest capital raising by a domestic private lender. 

In the recent results announcement, the bank reported a 32% decline in net profits on account of higher provisioning. However, Net interest income jumped almost 32% due to an 11% growth in loans. 

Moreover, the bank has a deal with JC Flowers ARC to clear out it's entire stressed assets book of Rs 48,000 crores for Rs 11,183 crores, marking a recovery of 23% and a sharp reduction of it's NPA ratio from 12.89% to 2%! 

With such steps underway, the company is working towards reclaiming it is lost glory and achieving greater feats. Let's wait and see what awaits the stock which once reached a lifetime high of Rs 404 and had a market cap of well over Rs 80,000 crores!