YES Bank shares went up again on Tuesday, marking the second day of gains. The stock climbed 0.75% to a high of ₹20.14 before settling slightly lower at ₹20.06. So far this year, the share has fallen by 4.43%.
This fresh rise was mainly driven by a positive update from credit rating agency ICRA. The agency upgraded or confirmed its ratings on YES Bank’s infrastructure and Basel III bonds worth ₹24,460.80 crore. The new rating is ICRA AA-/Stable, which is seen as a strong sign of trust.
ICRA said this upgrade was due to the bank’s steady growth in business, better quality of its loan book, and fewer bad loans. YES Bank’s focus on giving smaller, less risky loans is helping the bank earn more and become more stable.
ICRA also mentioned that the bank has been recovering money from earlier bad loans, which has supported its profits. Although such recoveries may slow down, they are still expected to help the bank’s earnings in the short term.
A major development for YES Bank is that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is planning to buy a big stake. Once approvals are in place, SMBC will become the bank’s largest shareholder. This move is expected to boost YES Bank’s position further.
From a technical point of view, YES Bank is doing better than many of its past averages, like the 5-day, 10-day, and 200-day simple moving averages. Its Relative Strength Index (RSI) is 49.17, showing it is neither overbought nor oversold.
The bank’s weak loan book — including loans overdue by up to 90 days — has dropped to 10% of its capital, compared to over 21% a year ago. However, this part of the business still needs careful watching.
Even though YES Bank is improving, it still faces challenges such as high costs, low-interest income, and a high share of large corporate deposits. These affect its profits, but the recent upgrades show a positive future ahead.
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