Yes Bank‘s share price was upbeat on Friday morning looking to halt its three-session losing streak.

What Happened: Nomura maintained its “neutral” rating on Yes Bank, following its Q2 business update. The brokerage firm has set a target price of ₹17. The analysts said that the update highlights strong deposit growth, especially driven by the increase in current account and savings account deposits.

The firm expects Yes Bank to deliver a return on assets (RoA) of 0.5% in FY25 and 0.8% in FY26, alongside a return on equity (RoE) of 4.5% in FY25 and 7.5% in FY26.

While the bank’s return profile is improving, Nomura notes that it remains significantly lower than its peers. Additionally, Nomura believes the current valuation already reflects the positives.

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For the September quarter, deposits increased by 18.3% year-on-year to ₹2.77 lakh crore, compared with ₹2.34 lakh crore during the same period last year. Loan growth stood at 13.1% year-on-year, reaching ₹2.36 lakh crore for the September quarter. 

Stake Sale: Japan’s Mitsubishi UFJ Financial Group (MUFG) has reportedly re-entered the race to acquire a majority stake in Yes Bank. This move follows the rejection of MUFG’s $2 billion proposal to invest in HDB Financial, the non-banking finance arm of HDFC Bank, by the lender’s board in August.

Price Action: Yes Bank’s share price was up 0.31% to trade at ₹23.92 as the markets opened on Friday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.