Yes Bank’s share price was surging on Monday as the company posted string results for the March quarter.
What Happened: The private lender reported of a 123% year-on-year (YoY) increase in its profit for the March quarter, reaching ₹452 crore. The surge in profit is primarily attributed to income tax refunds totaling ₹247 crore, which includes interest on a refund of ₹118 crore received during the quarter.
The bank’s CEO Prashant Kumar said that these gains were strategically employed to bolster asset quality metrics, leading to a significant reduction in the non-performing assets (NPA) and net carrying value of stressed assets.
See also: Why ICICI Bank's Share Price Is Climbing Nearly 2% After Q4 Results
However, analysts at Kotak Securities were not very impressed by the numbers. The brokerage firm has maintained its “sell” call on the stock with a target price of ₹19. The target reflects an around 20% downside from the stock current market price of around ₹27. The brokerage emphasised that while one-offs have dominated the Q4 earnings, the recovery process for Yes Bank will be slow.
In related news, media reports suggest that the State Bank of India (SBI) has received government approval to sell its 25.02% stake in Yes Bank. According to the Financial Express report, potential buyers for SBI’s stake include Bain Capital, Saudi Arabia’s sovereign wealth fund, and Japanese funds.
Price Action: Yes Bank’s share price was up 5.16% to trade at ₹27.50 in early trade on Monday.
Read next: Railway Stock Zooms 6% After Bagging ₹1,198 Cr Order
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.