Table of Contents
Yes Bank Q1 results 2023: When the private lender releases its quarterly data for the April to June quarter of FY24, both stock market investors and onlookers will be interested to see how the private lender did on the cost of funding front. However, several brokerages anticipate modest sequential figures but improved and more consistent activity year over year. They stated that the surge in Yes Bank share price ahead of today’s Q1 results is due to the lender’s improved YoY figure forecasts. However, margins and provisioning will undoubtedly be scrutinised, considering interest rates have stayed high over the last two quarters.
“The attention will be on margins and provisioning numbers in Yes Bank’s projected mixed set of financial results,” said Aamar Deo Singh, Head Advisory at Angel One. The quarterly numbers will be closely watched, although Net Interest Income (NII) is expected to rise year on year. The focus will also be on how the private lender restructures its lending organization in the next quarters, since this will have a big impact on the overall business.”
YoY margins may improve
“I am expecting soft Yes Bank results on a sequential basis, but on a year-on-year (YoY) basis, Yes Bank is expected to improve its numbers, especially margins and net interest income (NII), because, after two consecutive quarters of high-interest rate regime, the private lender is expected to lower its provisioning,” said Vaibhav Kaushik, Research Analyst at GCL Broking. As a result of the lower provisioning, both margins and NII are expected to improve. However, if the bank continues to use heavy provisioning, the Yes Bank results may turn out to be a dismal event for Dalal Street when it reopens on Monday next week.”
Why Yes Bank shares are skyrocketing?
“Yes Bank shares surged ahead of Q1 results 2023 in anticipation that the private lender may lower provisioning as the company has managed to negate the negativity in the market and now investors have grown faith in the private lender as its management is under the control of State Bank of India,” Vaibhav Kaushik of GCL Broking said. In fact, the market anticipates an increase in deposits as well.”
Deposits at Yes Bank increased 13.5% to 219,369 crore in Q1FY24, up from 193,241 crore in the same time the previous fiscal year. Brokerage firms anticipate lackluster results from the bank in the June quarter due to sluggish underlying business growth. Yes Bank’s net profit is expected to fall 4% to 298 crore in the current quarter, according to Kotak Institutional Equities.
Aamar Deo Singh of Angel One said of pivot numbers for Yes Bank shares, “The levels to watch are 20 on the upside and 16 on the downside.” Yes Bank’s share price is currently trading significantly ahead of its earnings.”