Yes Bank released a positive business update for the October-December 2024 quarter (Q3FY25), which led to a surge in its share price on Friday. The stock opened with gains on the NSE, reaching an intraday high of ₹20.19, up by more than 2% during the morning session.
Reasons Behind the Price Surge
According to Anshul Jain, Head of Research at Lakshmishree Investment & Securities, “Yes Bank’s business update has instilled confidence among investors. On a year-on-year (YoY) basis, the bank has reported:
- 12.60% growth in loans and advances.
- 14.60% growth in deposits.
These figures indicate strong performance, creating optimism for robust quarterly results, which is the primary reason for the stock’s upward momentum.”
Technical Outlook for Yes Bank
Sumit Bagadia, Executive Director of Choice Broking, shared his technical analysis:
- The stock has a strong base at ₹19.
- It is facing resistance at ₹22.
- If it closes above ₹22, it could quickly rise to ₹24.
Investment Advice
- Existing Investors:
- Hold the stock for near-term targets of ₹22 and ₹24.
- New Investors:
- Consider momentum buying with a strict stop-loss at ₹19.
Key Highlights from the Q3FY25 Business Update
Yes Bank disclosed the following metrics to the Indian stock exchanges on Friday:
- Loans and Advances:
- Stood at ₹2,45,035 crore, marking a 4.20% increase from ₹2,35,117 crore in Q2FY25.
- Up by 12.60% YoY from ₹2,17,523 crore in Q3FY24.
- Deposits:
- Reached ₹2,77,199 crore, up by 14.60% YoY from ₹2,41,831 crore in Q3FY24.
Conclusion
Yes Bank’s positive Q3FY25 business update and subsequent rise in share price make it an attractive option for investors. With strong technical support at ₹19 and a promising financial outlook, the stock is likely to achieve near-term targets of ₹22 and ₹24. However, investors should remain cautious and adhere to a strict stop-loss strategy at ₹19 to mitigate risks.
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