A Comprehensive Analysis of Yes Bank's Share Price Performance Over the Years

Published on: Thu Feb 23 2023

A Comprehensive Analysis of Yes Bank's Share Price Performance Over the Years

Yes Bank, India's largest private sector bank, has seen significant fluctuations in its share price over the years. In this blog, we will examine the bank's share price performance in detail, including its history, key drivers of its stock prices, and future outlook.

Yes Bank's Share Price Performance Throughout History

Yes Bank went public on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) in 2005, with an IPO price of INR 45 per share. In August 2015, the stock price steadily increased/raised from INR 45 per share to INR 1,815 per share.

However, the bank's share price began to fall/decline in September 2018 due to concerns about non-performing assets (NPAs) and corporate governance issues. Stock prices fell further, reaching a low of INR 5.65 per share in March 2020.

The Reserve Bank of India (RBI) placed Yes Bank under a moratorium and took control of the bank in March 2020. The bank's stock price fell further, reaching a low of INR 5.30 per share in May 2020.

Yes Bank's management was restructured/reorganized after the RBI took control, and a new CEO was appointed. The government also invested in the bank. As a result, Yes Bank's stock began to recover, and the company was relisted on the BSE and NSE in June 2020.

Key Drivers of Yes Bank's Stock Prices

Several factors have influenced Yes Bank's stock price fluctuations/volatility over the years. Here are some of the most important motivators:

NPAs (non-performing assets): In recent years, NPAs have been a major source of concern for Yes Bank. When the bank's non-performing assets (NPAs) increased, investors lost faith in the bank's financial health, and stock prices fell/dropped.

Corporate Governance Allegations: The bank was accused of corporate governance issues such as related party transactions, conflicts of interest, and a lack of transparency. These allegations harmed the bank's reputation as well as its stock price.

The RBI's decision to impose/place a moratorium on Yes Bank in March 2020 resulted in a significant drop in the bank's stock price. Investors were concerned about the bank's ability to meet its financial obligations as well as its prospects for the future.

Government Capital Infusion: When the government injected/infused capital into Yes Bank, investors regained faith in the bank's financial health, resulting in a recovery in stock prices.

Future Outlook for Yes Bank's Share Price Performance

Investors are interested in the future outlook for Yes Bank's share price performance. While the bank has taken several steps to address its financial issues and improve corporate governance, there are still several challenges ahead.

NPA Reduction: In order to regain investor confidence, the bank must/should continue to reduce its NPAs and improve its asset quality.

Capital Infusion: To meet regulatory requirements and support future growth, the bank must maintain adequate capital levels.

Yes Bank has been investing in digital transformation in order to improve its efficiency and customer experience. If successful, the bank's future prospects and stock prices may/could benefit.

Changes in the regulatory environment may/could have an impact on Yes Bank's future prospects and stock prices. Investors must keep a close eye on regulatory developments.

Conclusion

The share price performance of Yes Bank has been volatile over the years due to a variety of factors. While the bank has taken steps to address its financial issues and improve corporate governance, there are still several challenges ahead. Before investing in the bank's stock, investors should closely monitor its performance and future prospects.

Returns are subject to market risk.

Past performance do not assure future returns.

Name: Algonauts Advisory Services Private Limited

Registration Number: INA000017277

Type: Non-Individual

Validity: Oct 28, 2022 - Perpetual

Contact Details (Principal Officer):

Mr.Sharad Sankaran:
(Principal Officer)
Algonauts Advisory Service Private Limited:
Email: principal.officer@algonauts.in
Contact Number: +91 8108832455
Address: 1, Dora Rose, I C Colony, Borivali West, Maharashtra, Mumbai 400103.

Contact details of SEBI office:

Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan, Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.

Disclaimer:

Algonauts Advisory Private Limited (Algonauts Advisory Private Limited) is an investment advisor engaged in the equity advisory business. Algonauts Advisory Private Limited is Sebi registered investment adviser. Algonauts Advisory Private Limited Research Analyst SEBI Registration Number - INA000017277. Algonauts Advisory Private Limited SEBI Registration INA000017277.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit www.algonautsadvisory.in to view Technical Research Reports.
The information and opinions in this report have been prepared by Algonauts Advisory Private Limited and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of Algonauts Advisory Private Limited. While we would endeavour to update the information herein on a reasonable basis, Algonauts Advisory Private Limited is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Algonauts Advisory Private Limited from doing so.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. Algonauts Advisory Private Limited will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. Algonauts Advisory Private Limited accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.
Algonauts Advisory Private Limited or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months.
Algonauts Advisory Private Limited encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Algonauts Advisory Private Limited or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report.
Accordingly, neither Algonauts Advisory Private Limited nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Algonauts Advisory Private Limited or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.
Since associates of Algonauts Advisory Private Limited and Algonauts Advisory Private Limited as a entity are engaged in various financial service businesses, they might have financial interests or actual/ beneficial ownership of one percent or more or other material conflict of interest various companies including the subject company/companies mentioned in this report.
Algonauts Advisory Private Limited may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor Algonauts Advisory Private Limited have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on Algonauts Advisory Private Limited by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Algonauts Advisory Private Limited and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.