🏦 Yes Bank 🏦
Is it a good time to buy Yes Bank? 💵
Fundamentals:📊
❧ In the recent quarterly results, the company posted a net profit of Rs.367 Cr compare to a loss of Rs.3788 Cr in the same period last year.
❧ Profit was up by 37.9% sequentially 🏦 over the previous quarter.
❧ Provisions fell significantly to Rs.271 Cr from Rs.5113 Cr in a year-ago period.
What are the provisions❓
Provisions are the losses booked by the banks on the loans ahead of time. 🏦
❧ NII (Net Interest Income) rose by 84.4% year on year to Rs.1819 Cr.
❧ Gross NPAs reduced from 14.7% to 13.9% year on year.📉
❧ Asset quality improved, Net Net NPAs reduced from 📉 5.3% to 4.5% year on year
❧ Bank disbursed around Rs.70,000 Cr in the financial year 2021-22.📊
❧ Bank has a capital adequacy ratio of 17.4% at the end of the quarter, which measures how much percentage of bank capital is available as a percentage of its risk-weighted credit exposure.
❧ It has a weak ROA (Return on assets) with the🏦 3-year average at around -1.98%.📉
❧ Yes bank is improving its financials quarter by quarter but still, it looks like it is still a long way to go for the bank considering its peer performances.
❧ If financials keep getting better it can be a good investment opportunity.🏦
Technicals:📊
❧ Considering the chart with the weekly time frame bank has seen a long consolidation in the given range between Rs.12 to Rs.16.📊
❧ There have been significant volumes in a few of the weeks but it was not converted into a positive momentum.
❧ RSI is near 50 which can be considered a consolidation phase for the stock.
❧ The stock crossed its 50 DMA levels in the last trading session.
❧ It will be interesting to see how the stock performs in the next few weeks, if it breaks the upper range then we can look for investment opportunities considering the medium to long term perspective.📊
Disclaimer: The information mentioned above is only for educational purposes. Kindly contact your financial advisor before trading/investing 💰
Please post your views/queries in the comments below. 👇
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