Yes Bank Outlook: After increasing the credit rating, there is a great buying in the shares of Yes Bank and its prices have reached a record level of 52 weeks.
Yes Bank Outlook: After increasing the credit rating, there is a great buying in the shares of Yes Bank and its prices have reached a record level of 52 weeks. Shares of Yes Bank have gained 24 per cent in the last five days and today alone, its shares gained almost 11 per cent in intra-day and reached a price of Rs 16.25 on NSE. This is the record level of last one year. According to market experts, there is still an opportunity to earn further in this. Rating agency Care Ratings has upgraded the credit rating of the bank, after which its shares showed a great trend today.
Expert advised to be careful
According to Dr Ravi Singh, Vice President and Head of Research, Share India Securities, the shares of Yes Bank have jumped due to the upgrade of the rating of Infrastructure Bonds. This stock can reach the level of Rs 18-20 now. According to Ravi Singh, lower level entry investors can take positions at the current price. However, there is a need to be careful at the level of Rs 20 as there is a possibility of slippage from here.
Upgrade rating of bank instruments
The rating agency has downgraded the bank’s bonds worth Rs 5000 crore, lower tier-2 bonds worth Rs 1059.70 crore and tier-2 bonds (Basel 3) worth Rs 8900 crore from BBB and positive outlook to BBB+ and positive outlook. At the same time, the rating of Upper Tier 2 bonds of Rs 704.10 crore of the bank has been increased from BB+ and positive outlook to BBB+ and positive. Talking about the financial health of the bank, in the third quarter of the last financial year, there was a jump in net profit on a quarterly basis. In September 2021, the bank had a net profit (Profit After Tax) of Rs 22.55 crore, while in the next quarter October-December 2021, the bank’s net profit increased to Rs 26.64 crore.
Four years ago the stock was close to Rs 400
Yes Bank shares are now showing a decline, whereas just four years ago it was close to four hundred rupees. On August 20, it was at a price of Rs 394, but last year it had slipped below Rs 10 as well. After the financial disturbances in the bank came to light, its bad days started, due to which its prices fell on the floor.
Thus saved Yes Bank
To save Yes Bank from sinking, the government had to come forward and RBI reconstituted the bank in March 2020 by taking control of the bank. SBI bought 49 per cent stake in Yes Bank and then reduced it to 30 per cent and thus Yes Bank could survive. To avoid heavy selling in Yes Bank shares, the government on March 13 decided that 75 per cent of the shareholders’ holdings would remain locked for three years. However, those who had less than 100 shares of the bank, this rule was not applied to them.