Shares of YES Bank saw a reversal in Monday's trading session, relinquishing early gains to trade significantly lower after reporting subdued Q3 2023 results, falling below street expectations. Despite a year-on-year net profit growth of about 440%, the bank's performance did not meet market estimates. Provisions for the quarter sharply decreased, contributing to the bottom line growth, but the pre-provision operating profit declined 5.4% YoY.
The stock initially rose post-results but later dropped 3.45% from the day's high to Rs 24.50. YES Bank's shares have surged over 80% in the last three months but faced profit booking on Monday. Kotak Institutional Equities downgraded the stock to 'sell' while acknowledging the performance in line with expectations, emphasizing the need for a lower valuation multiple to change their view.
