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Synopsis: YES Bank shares surged by 4.88% in early trading on the Bombay Stock Exchange (BSE) following the announcement of its Q1 FY25 earnings. The bank reported a 46.69% year-on-year increase in net profit, amounting to Rs 502.43 crore, up from Rs 342.52 crore in the previous year. Total income also saw a significant rise of 17.59%, reaching Rs 8,918.14 crore compared to Rs 7,584.34 crore in Q1 FY24. Market reaction to these results boosted YES Bank's market capitalization to Rs 79,843 crore, reflecting a positive investor sentiment amidst the bank's improved financial performance.
Mumbai, July 22, 2024: YES Bank shares saw a notable uptick of 4.88% to Rs 25.99 in early trading on the Bombay Stock Exchange (BSE), following the release of its first-quarter financial results. This increase marks a positive response from investors amidst the broader market challenges.
The private sector lender reported a robust performance for Q1 FY25, with a significant year-on-year growth in net profit. The bank's net profit surged by 46.69% to Rs 502.43 crore, up from Rs 342.52 crore in the corresponding period last year. Similarly, total income witnessed a substantial increase of 17.59%, totaling Rs 8,918.14 crore compared to Rs 7,584.34 crore in Q1 FY24.
Market analysts noted that the strong financial results propelled YES Bank's stock to open higher at Rs 25.84, continuing its upward trajectory through early trading hours. The stock's trading volume amounted to 56.01 lakh shares on BSE, with a turnover of Rs 14.38 crore, highlighting heightened investor interest.
Market Performance and Technical Indicators
Over the past year, YES Bank shares have shown considerable resilience, marking a 42% increase, while over a two-year period, the stock has gained 74%. The bank's stock reached a 52-week high of Rs 32.81 in February 2024, contrasting with a low of Rs 14.10 in October 2023.
Technical indicators reveal a mixed sentiment: the stock's relative strength index (RSI) stands at 50.1, indicating a neutral trading position. YES Bank shares are currently trading above their 20-day, 50-day, 100-day, 150-day, and 200-day moving averages, but below the 5-day and 10-day averages, underscoring fluctuations in short-term trends.
Financial Highlights and Outlook
In a statement accompanying the earnings release, YES Bank highlighted key financial metrics for Q1 FY25. The bank reported non-interest income of Rs 1,199 crore, reflecting a 20.5% year-on-year increase. Moreover, net provision costs were reduced by 41.2% compared to the previous year. Return on assets (RoA) improved to 0.5% from 0.4% in Q1 FY24, signaling enhanced operational efficiency and asset management.
Disclaimer: This article is based on publicly available information and market analysis. Investors are advised to conduct further research and consult with financial advisors before making investment decisions.
