12-08-2025
Down 20% from peak, Yes Bank trading below key averages. What's the potential downside?
Yes Bank shares have declined 7% since the announcement of its Q1 earnings on July 19, notwithstanding a strong performance. The stock is currently trading below most of its moving averages, indicating a weak trend. Investors willing to make a move must be mindful of the certain caveats flagged by experts who see further downside in the medium term.
ADVERTISEMENT Down by over 20% from the peak of 25.10 hit by Yes Bank on August 13, 2024, the counter has struggled in 2025. It has fallen below 10-day, 20-day, 30-day, 50-day, 100-day and 200-day simple moving average (SMA).
The data pertaining to stock price is as on Monday closing.
Commenting on the current trends, KKunal V Parar, Vice President - Technical Research and Algo at Choice Equity Broking said that the stock's slip below the 50-day moving average is indicating a prevailing bearish trend."Yes Bank has breached its recent support level, suggesting the potential for further downside movement. The weekly chart also confirms sustained weakness, with the stock continuing to trade in a negative territory. Moreover, the weekly RSI is hovering below the 50 mark and has formed a negative crossover, reinforcing the bearish sentiment,"Parar Choice Broking analyst anticipates further decline towards the Rs 16 level, considering the overall technical structure. He sees strong resistance is placed near Rs 21.
ADVERTISEMENT Concurring to Parar's view Anuj Gupta, Director at Ya Wealth Global Research said that the overall trend of yes bank is looking weak as fundamentals do not support the current prices in his view. Gupta sees strong support at 16 followed by 12 while resistance at 24 and next resistance at 28. levels. Unlock 500+ Stock Recos on App
Yes Bank's Q1 profit after tax (PAT) stood at Rs 801 crore, up 59% year-on-year and 8.5% quarter-on-quarter. It was the seventh straight quarter of PAT improvement. The net interest income grew 6% YoY to Rs 2,371 while net interest margin (NIM) was up 10 bps YoY while remaining flat on a QoQ basis.
ADVERTISEMENT The gross slippages for the lender increased to Rs 1,458 crore (2.4% of advances) versus Rs 1,223 crore (2% of advances) in Q4FY25.
Fundamental analyst Kranthi Bathini, Director-Equity Strategy at WealthMills Securities sees the ongoing consolidation to continue with no real movement expected in the medium term. Bathini said that the stake sale in Yes Bank by the State Bank of India (SBI)-led consortium remains an overhang.
ADVERTISEMENT Sumitomo Mitsui Financial Group (SMFG) is expected to buy a 20% stake in Yes Bank. On May 9, Yes Bank announced SMBC's plans to acquire a stake from SBI and other Indian banks who had participated in the banks' reconstruction scheme in 2020. The deal size is estimated at Rs 13,480 crore.
Also Read: SMFG stake buy in Yes Bank to pave way for other foreign entrants in Indian banking sector: Fitch
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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