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Regaining investors confidence remains an uphill task for YES Bank

Asset quality still an unconvincing weak patch; quality of deposit growth also needs monitoring

YES Bank
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he bank reported slippages of only Rs 100 crore in Q2 thanks to Supreme Court’s stay order on recognising non-performing assets (NPAs).

Hamsini Karthik Mumbai
YES Bank published its July-September quarter (second quarter, or Q2) results last Friday. In anticipation of an improved performance, its stock was locked in the upper circuit, with gains of 5 per cent. While Monday’s weak market conditions were a drag on its stock, the critical aspect to acknowledge is that despite two successive quarters of net profit (Rs 129 crore in Q2 bettering first quarter’s, or Q1’s, performance), analysts are in no hurry to reconsider their stance on the lender.

ICICI Securities was an exception to resume coverage with a ‘hold’ rating, though a majority remains negative on the stock.

The

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First Published: Oct 26 2020 | 5:52 PM IST

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