Yes Bank Q3 Surge: Deposits, Loans, and Shares on the Rise

Yes Bank shares saw a sharp surge in buying activity following the release of its Q3 update for FY2024-25, showcasing significant growth in deposits and advances. Analysts believe the stock, currently under a bullish trend, could touch ₹22 soon, driven by strong quarterly performance and improving fundamentals.

Strong Q3 Performance Drives Investor Confidence

Yes Bank reported a robust 14.6% year-on-year (YoY) increase in deposits, which climbed to ₹2.77 lakh crore, compared to ₹2.41 lakh crore in Q3FY24. Loans and advances also saw a healthy 12.6% YoY rise, reaching ₹2.45 lakh crore. On a sequential basis, loans grew by 4.2%, while deposits remained steady. The bank’s CASA deposits surged 27.6% YoY to ₹91,575 crore, reflecting a 3.4% quarterly growth.

According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, this growth signifies strong fundamentals, which have sparked renewed interest in Yes Bank shares.

Key Financial Metrics Show Improvement

The CASA ratio improved to 33% as of December 31, 2024, up from 29.7% a year ago. The credit-deposit ratio rose to 88.4%, up from 84.8% in the previous quarter. Meanwhile, the liquidity coverage ratio (LCR) stood at 133.2%, reflecting improved liquidity management.

However, Abhishek Pandya, Research Analyst at StoxBox, highlighted that deposits grew faster than advances, a sign of cautious management amid challenges in the microfinance and unsecured lending segments. He noted potential pressure on net interest margin (NIM) due to low-yield investments aimed at meeting PSL compliance.

Stock Outlook: Potential Upside with Caution

Sugandha Sachdeva, Founder of SS WealthStreet, highlighted that Yes Bank shares have formed a short-term base around ₹19-₹18.80. As long as this support level holds, the stock could target ₹21.20 to ₹22 in the near term, with a potential rally toward ₹24 if momentum sustains above ₹22.

She advised investors to adopt a cautious approach, setting strict stop-losses and staying attuned to developments in the broader market and any updates from the bank.

Investment Takeaway

Yes Bank’s Q3 performance signals a recovery path, with robust growth in deposits and advances reflecting improved investor sentiment. However, market experts suggest close monitoring of asset quality, profitability, and management guidance in the upcoming results to gauge the stock’s long-term potential.

Disclaimer: The views expressed are those of market analysts and do not constitute investment advice.

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