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Yes Bank likely to open in negative due to rise in NPAs

Yes Bank declared its quarterly results today wherein its Q2FY18 net profit rose ~25% yoy to ~Rs 1,003 Cr; overall, the result was in-line with estimates. However, the company posted a significant increase in its NPAs. This week the stock has already faced market’s brunt and it is expected to open in the red in the upcoming trading session.

The technicals also indicate that the stock has shown weaknesses on the daily and weekly chart and it is currently trading below its support zone of 340. The stock has witnessed heavy selling pressure in the last two trading sessions. A bearish crossover on weekly MACD indicates further weakness in the stock.

Private sector bank Yes Bank witnessed ~25% yoy growth in net profit in September quarter at ~Rs 1,003 cr. NIM stood at 3.7% in Q2FY18 Vs 3.4% in Q2FY17. However, the Gross NPA and Net NPA for the quarter have worsened to 1.82% and 1.04% respectively.

Recently, the Reserve Bank of India (RBI) had imposed on October 23, 2017, a monetary penalty of Rs 6 Cr on Yes Bank Limited (the bank) for non-compliance with the directions issued by RBI on Income Recognition Asset Classification (IRAC) norms and delayed reporting of information security incident involving ATMs of the bank.