Yes Bank investors richer by a third in April alone as the bank continues to see growth in loans and deposits

• Yes Bank’s shares have seen a tremendous rally in April, surging by a third since the beginning of the new financial year.
• In addition to continued growth in deposits and advances, the bank has also seen a ratings upgrade, giving its shares a fillip.
• Here’s everything you need to know about the triggers behind the rally in Yes Bank’s shares.

Yes Bank investors who kept their faith in the lender over the past year or so have something to finally be happy about, after growth returned to the bank, leading to a 32% increase in the company’s share price this month.

Until the end of March this year, Yes Bank’s shares witnessed volatility before rallying in April.

In its quarterly business update, Yes Bank has revealed that its deposits grew 21%, suggesting that the confidence is returning among its customers. Apart from this, the bank’s advances also grew 9%.

Ratings upgrade another trigger behind Yes Bank’s surge

In addition to the surge in loans and deposits, Yes Bank’s shares were helped by a ratings upgrade from CARE. The ratings of Yes Bank’s debt instruments and bonds have been upgraded a notch above, ranging from BBB+ to BB+ with a positive outlook.


The agency cited stabilisation of the bank’s operations and business growth as the two reasons behind the upgrade.

“The revision in ratings assigned to the debt instruments of Yes Bank factors in the bank’s continued demonstration of stabilisation of operations and growth in business i.e., advances as well as deposits,” said CARE Ratings in its upgrade.

Technical analysts suggest that the new support level for Yes Bank is around ₹13 a share, and if it manages to cross ₹15.50-16, the stock could see a breakout with an upside target of ₹19-20.

Analysts at ICICI Securities recommend a ‘hold’ rating on the stock.

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