Yes Bank Ltd
Yes Bank Ltd
Financial Services F&OIncorporated in 2003, Yes Bank Ltd is engaged in providing a wide range of banking and financial services[1]
Yes Bank trades at a P/E of 22.3x with a weak 3-year ROE of just 5% and zero dividend payout. While profit growth has been strong at 69% CAGR over 3 years off a low base, 72.73% of analysts rate it a Sell, and massive contingent liabilities of Rs.11,98,820 Cr pose significant risk.
Key Fundamentals
MidcapPrivate BankBanksTechnical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 24.6% CAGR over last 5 years
Weaknesses
7- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 8.55% over past five years.
- Company has a low return on equity of 5.34% over last 3 years.
- Contingent liabilities of Rs.11,98,820 Cr.
- Company might be capitalizing the interest cost
- Earnings include an other income of Rs.7,084 Cr.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoYes Bank trades at a P/E of 22.3x with a weak 3-year ROE of just 5% and zero dividend payout. While profit growth has been strong at 69% CAGR over 3 years off a low base, 72.73% of analysts rate it a Sell, and massive contingent liabilities of Rs.11,98,820 Cr pose significant risk.
- Strong profit growth of 69% CAGR over the last 3 years indicates recovery momentum from post-restructuring lows
- Stock has delivered 26% returns in the last 1 year, outperforming many banking peers
- Last year ROE improved to 7%, up from 5% three-year average, showing improving capital efficiency
- Market cap of Rs.78,292 Cr reflects institutional confidence in the bank's turnaround story
- P/B ratio of 1.53x is reasonable for a mid-sized private bank with improving profitability trajectory
- TTM profit growth of 43% demonstrates continued earnings acceleration
- 5-year profit CAGR of 25% shows sustained recovery trend beyond just a one-year bounce
- 72.73% of analysts (8 out of 11) rate the stock a Sell, reflecting deep institutional skepticism
- Contingent liabilities of Rs.11,98,820 Cr dwarf the market cap of Rs.78,292 Cr by over 15x, posing catastrophic tail risk
- Zero dividend yield despite repeated profits signals weak capital return policy and possibly insufficient capital buffers
- 3-year ROE of just 5% and 10-year ROE of 0% indicate structural inability to generate adequate shareholder returns
- Sales growth of -2% on TTM basis shows the top line is actually shrinking despite profit growth
- Low interest coverage ratio suggests vulnerability to rate cycle changes and asset quality stress
- 10-year stock CAGR of -19% means long-term investors have been severely destroyed despite recent recovery
- Other income of Rs.7,084 Cr inflates earnings quality, raising questions about sustainability of core operating profits
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- GST demand of Rs 63.27 Cr Jun 06
Maharashtra GST department confirmed a total demand of Rs 63,26,98,888 against Yes Bank. The bank plans to contest the order.
- UP GST penalty Rs 3.02 Cr Jun 21
UP GST department reduced penalty to Rs 3.02 Cr for FY 2021-22. The bank plans to contest this order as well.
- YES Securities onboarding ban May 26
NSE imposed a Rs 1 lakh penalty and 3-month client onboarding ban on YES Securities, though Yes Bank stated no material financial impact.
- ED raids on former employees Jun 16
Enforcement Directorate conducted raids on former Yes Bank employees. No details on scope or specific nature of the investigation disclosed.
- Q4FY26 profit up 44.5% YoY Jun 01
Net profit rose 44.5% YoY to INR 1,068 Crs for Q4FY26, driven by strong NII growth and NIM improving to 2.7%.
- Northern Arc credit partnership Jun 15
Shares rose 3% to Rs 24.38 on partnership with Northern Arc Capital for credit expansion, digital lending, and co-lending via 368 originator partners.
- BharatPe Flex credit-on-UPI launch Jun 02
BharatPe launched Credit-on-UPI solution powered by Yes Bank offering up to 45 days interest-free and 3-minute digital onboarding for eligible users.
- Highest NRI deposit rates at 6.6% Jun 12
Yes Bank offers highest FCNR(B) rates among major lenders at up to 6.60% on 5-year USD deposits, up from 3.35% earlier, to attract NRI deposits amid household savings shift.
- Board to consider fund raising Jun 23
Board will meet June 29, 2026 to consider raising funds via equity and debt securities through enabling resolutions.
- Block trade of ~1 Cr shares Jun 17
Block trade on NSE of approximately 10,010,983 shares at Rs 24.50 per share, totaling Rs 24.53 Cr, likely institutional participation.
- RBI approves new auditor Jun 13
RBI approved M/s MSKA & Associates LLP as Joint Statutory Auditor for FY 2026-27, pending shareholder approval at upcoming AGM.
- Multiple institutional investor meets Jun 24
Yes Bank held investor meetings at Goldman Sachs, Citi, Axis Capital, and Trinity India conferences and direct sessions with Tata AMC, HDFC Life in May-June 2026.
- Country Head Ajay Rajan resigns May 31
Country Head Ajay Rajan resigned for a better profile and was relieved on May 31, 2026.
TL;DR: Yes Bank is showing strong earnings momentum with Q4FY26 profit up 44.5% and NIM at 2.7%, complemented by strategic partnerships (Northern Arc, BharatPe) expanding its digital lending footprint. Key risks include GST demands totaling ~Rs 66 Cr under contest and lingering legacy issues (ED raids on ex-employees). The trend is improving operationally with SMBC backing, aggressive deposit mobilization, and potential capital raise ahead, though regulatory and legal overhangs warrant monitoring.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,218 | 6,445 | 6,714 | 6,989 | 7,458 | 7,725 | 7,737 | 7,833 | 7,623 | 7,605 | 7,389 | 7,553 | 7,662 |
| Expenses | 2,881 | 2,726 | 2,883 | 2,948 | 3,340 | 2,820 | 2,984 | 2,969 | 3,080 | 3,110 | 3,129 | 2,961 | 2,999 |
| Financing Profit | -780 | -730 | -962 | -934 | -1,191 | -580 | -791 | -753 | -809 | -740 | -833 | -501 | -366 |
| Fin. Margin % | -13% | -11% | -14% | -13% | -16% | -8% | -10% | -10% | -11% | -10% | -11% | -7% | -5% |
| Other Income | 1,055 | 1,192 | 1,267 | 1,255 | 1,642 | 1,271 | 1,488 | 1,583 | 1,815 | 1,825 | 1,724 | 1,720 | 1,816 |
| Interest | 4,117 | 4,449 | 4,794 | 4,975 | 5,309 | 5,486 | 5,544 | 5,617 | 5,352 | 5,235 | 5,093 | 5,093 | 5,030 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 275 | 462 | 304 | 320 | 451 | 691 | 697 | 830 | 1,006 | 1,085 | 891 | 1,218 | 1,449 |
| Tax % | 25% | 25% | 25% | 24% | -4% | 25% | 19% | 25% | 26% | 25% | 25% | 21% | 25% |
| Net Profit | 206 | 347 | 229 | 243 | 467 | 516 | 567 | 619 | 745 | 809 | 664 | 957 | 1,082 |
| EPS in Rs | 0.07 | 0.12 | 0.08 | 0.08 | 0.16 | 0.16 | 0.18 | 0.2 | 0.24 | 0.26 | 0.21 | 0.3 | 0.34 |
| Gross NPA % | 2.2% | 2% | 2% | 2% | 1.7% | 1.7% | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 1.5% | 1.3% |
| Net NPA % | 0.83% | 1% | 0.9% | 0.9% | 0.6% | 0.5% | 0.5% | 0.5% | 0.3% | 0.3% | 0.3% | 0.3% | 0.2% |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 11,572 | 13,533 | 16,425 | 20,269 | 29,624 | 26,052 | 20,039 | 19,019 | 22,702 | 27,606 | 30,919 | 30,208 |
| Expenses | 2,548 | 3,429 | 4,790 | 6,595 | 11,834 | 39,246 | 14,937 | 8,058 | 10,371 | 11,350 | 11,360 | 12,199 |
| Financing Profit | 940 | 1,139 | 1,008 | 1,144 | -2,021 | -32,452 | -7,509 | -1,568 | -2,468 | -3,272 | -2,439 | -2,441 |
| Fin. Margin % | 8% | 8% | 6% | 6% | -7% | -125% | -37% | -8% | -11% | -12% | -8% | -8% |
| Other Income | 2,048 | 2,729 | 4,218 | 5,293 | 4,675 | 11,956 | 3,107 | 3,405 | 3,883 | 5,355 | 6,157 | 7,084 |
| Interest | 8,083 | 8,965 | 10,627 | 12,529 | 19,811 | 19,258 | 12,611 | 12,528 | 14,800 | 19,527 | 21,998 | 20,450 |
| Depreciation | 86 | 112 | 173 | 232 | 305 | 342 | 360 | 403 | 433 | 546 | 493 | 0 |
| PBT | 2,902 | 3,756 | 5,053 | 6,205 | 2,349 | -20,838 | -4,762 | 1,434 | 981 | 1,538 | 3,224 | 4,643 |
| Tax % | 31% | 33% | 34% | 32% | 27% | -21% | -27% | 26% | 25% | 16% | 24% | 24% |
| Net Profit | 1,997 | 2,530 | 3,340 | 4,233 | 1,709 | -16,433 | -3,489 | 1,064 | 736 | 1,285 | 2,447 | 3,512 |
| EPS in Rs | 9.56 | 12.03 | 14.63 | 18.38 | 7.38 | -13.09 | -1.39 | 0.42 | 0.26 | 0.45 | 0.78 | 1.12 |
| Div. Payout % | 19% | 17% | 16% | 15% | 27% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 418 | 421 | 456 | 461 | 463 | 2,510 | 5,011 | 5,011 | 5,751 | 5,754 | 6,271 | 6,276 |
| Reserves | 11,248 | 13,342 | 21,583 | 25,292 | 26,424 | 19,185 | 28,127 | 28,688 | 34,967 | 36,402 | 41,562 | 44,882 |
| Borrowing | 26,220 | 31,659 | 38,607 | 74,894 | 1,08,424 | 1,13,790 | 63,949 | 72,340 | 77,754 | 80,508 | 71,971 | 65,451 |
| Deposits | 91,159 | 1,11,704 | 1,42,857 | 2,00,689 | 2,27,558 | 1,05,311 | 1,62,846 | 1,97,063 | 2,17,382 | 2,66,230 | 2,84,420 | 3,18,969 |
| Other Liabilities | 7,098 | 8,117 | 11,556 | 11,115 | 17,990 | 17,036 | 13,660 | 15,476 | 19,350 | 17,469 | 19,892 | 34,626 |
| Total Liabilities | 1,36,143 | 1,65,243 | 2,15,060 | 3,12,450 | 3,80,860 | 2,57,832 | 2,73,593 | 3,18,578 | 3,55,204 | 4,06,362 | 4,24,116 | 4,70,204 |
| Fixed Assets | 296 | 414 | 612 | 765 | 778 | 730 | 2,096 | 2,016 | 2,156 | 2,509 | 2,872 | 3,198 |
| CWIP | 26 | 60 | 75 | 72 | 51 | 294 | 63 | 125 | 296 | 357 | 206 | 0 |
| Investments | 43,193 | 48,788 | 49,982 | 68,293 | 89,329 | 43,748 | 43,115 | 51,754 | 76,749 | 89,997 | 84,725 | 87,755 |
| Other Assets | 92,628 | 1,15,980 | 1,64,391 | 2,43,319 | 2,90,701 | 2,13,061 | 2,28,320 | 2,64,683 | 2,76,003 | 3,13,499 | 3,36,313 | 3,79,251 |
| Total Assets | 1,36,143 | 1,65,243 | 2,15,060 | 3,12,450 | 3,80,860 | 2,57,832 | 2,73,593 | 3,18,578 | 3,55,204 | 4,06,362 | 4,24,116 | 4,70,204 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -2,317 | -304 | 4,384 | -21,810 | -24,573 | -57,721 | 55,396 | 23,598 | -25,816 | 9,645 | 6,386 | 21,217 |
| Investing | -3,591 | -4,023 | -4,478 | -8,738 | -6,235 | 14,128 | 441 | -14,566 | -13,026 | -12,453 | 8,514 | -4,971 |
| Financing | 7,574 | 4,989 | 11,429 | 35,748 | 33,039 | 25,038 | -34,942 | 8,391 | 11,450 | 2,771 | -5,651 | -6,485 |
| Net Cash Flow | 1,666 | 662 | 11,336 | 5,199 | 2,231 | -18,555 | 20,895 | 17,423 | -27,392 | -38 | 9,249 | 9,761 |
| Free Cash Flow | -2,428 | -569 | 3,999 | -22,195 | -24,871 | -58,256 | 55,137 | 23,199 | -26,555 | 8,683 | 5,665 | 20,515 |
| CFO/OP | -14 | 10 | 54 | -143 | -123 | 433 | 1,101 | 216 | -209 | 62 | 33 | 112 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 21% | 20% | 19% | 18% | 6% | -68% | -13% | 3% | 2% | 3% | 5% | 7% |
Documents
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Company Information
Incorporated in 2003, Yes Bank Ltd is engaged in providing a wide range of banking and financial services[1]