Yes Bank share performance saw a positive surge immediately following Moody’s upgrade of its outlook from stable to positive. The Yes Bank share price opened higher and continued to rise in early trading, gaining as much as 7%. The upgrade boosted investor confidence in Yes Bank’s recovery and growth potential, leading to increased buying activity.
Moody’s recently revised its outlook on Yes Bank Stock from “stable” to “positive.” This upgrade is driven by the expectation of a gradual improvement in the bank’s asset quality and profitability. It reflects the bank’s efforts to strengthen its balance sheet, increase its provisioning coverage, and improve its capital position.
Moody’s cited expectations of gradual improvement in the bank’s profitability, asset quality, and capitalization as reasons for the upgrade.
Moody’s upgraded Yes Bank Share outlook from “stable” to “positive” due to several key reasons:
- Moody’s anticipates a gradual improvement in Yes Bank’s depositor base and lending franchise, which will likely boost its core profitability over the next 12-18 months.
- The positive outlook also acknowledges the significant improvement in Yes Bank’s asset quality and capitalization over the past 2-3 years. This demonstrates the bank’s commitment to financial stability and resilience.
- Moody’s expects that Yes Bank’s ability to meet the Reserve Bank of India’s Priority Sector Lending (PSL) targets through new lending from its branches will help reduce operating expenses, thereby improving overall profitability.
- While acknowledging the existing challenges related to weak core profitability, Moody’s believes that further improvement in the bank’s credit profile is possible through a cleanup of legacy stressed assets and/or enhancements to its capital and profitability.
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More Updates on Yes Bank Share:
Recent reports suggest that SBI is looking to sell a significant portion, or even its entire 23.99% stake in Yes Bank. This could imply that SBI believes the bank’s recovery is well underway and sees this as an opportune time to exit its investment.
SBI, along with other lenders, played a crucial role in rescuing Yes Bank in 2020 by infusing capital and stabilizing the bank. This suggests that SBI has confidence in Yes Bank’s long-term potential.