Yes Bank Q1 results 2023: As the private lender is going to announce its quarterly numbers for April to June quarter in FY24, both stock market investors and observers would be keen to see how the private lender has fared on cost of funding front. However, some brokerages are expecting soft numbers on sequential basis but a better and sustained business numbers on year-on-year basis. They said that rise in Yes Bank share price ahead of Q1 results today is nothing but better YoY number expectations from the lender. However, margins and provisioning would be definitely in focus as last two quarters have remained high interest rate regime.
On what to expect in Yes Bank Q1 results today, Aamar Deo Singh, Head Advisory at Angel One said, “The attention will be on margins and provisioning numbers in Yes Bank’s projected mixed set of financial results. The quarterly results will also be anxiously awaited, but Net Interest Income (NII) is also anticipated to increase on a YoY basis. Focus will also be placed on how the private lender restructures its lending company over the coming quarters because that will have a significant impact on the total business.”
YoY margins may improve
Expecting better YoY numbers in Yes Bank Q1 results, Vaibhav Kaushik, Research Analyst at GCL Broking said, “I am expecting soft Yes Bank results on sequential basis but on year-on-year (YoY) basis, Yes Bank is expected to improve its numbers, especially margins and net interest income (NII) because after two consecutive quarters of high interest rate regime, the private lender is expected to lower its provisioning. So, both margins and NII are expected to improve due to lowering of provisioning. However, in case the bank choses to stick with high provisioning, then in that case the Yes Bank results may turn out a disappointing event for Dalal Street, when it would re-open on Monday next week.”
Why Yes Bank shares are skyrocketing?
On why Yes Bank share price surged ahead of Q1 results 2023 announcement, Vaibhav Kaushik of GCL Broking said, “Yes Bank shares surged ahead of Q1 results 2023 in anticipation that the private lender may lower provisioning as the company has managed to negate the negativity in the market and now investors have grown faith about the private lender as its management is under the control of State Bank of India. In fact market is expecting growth in deposits as well.”
Yes Bank’s deposits in Q1FY24 rose 13.5 per cent to ₹219,369 crore from ₹193,241 crore in the corresponding period in previous financial year. Brokerage firms expect soft numbers from the bank in June quarter on weak underlying business growth. Kotak Institutional Equities expects Yes Bank’s net profit to decline four per cent to ₹298 crore in the quarter-under-review.
On pivot numbers in regard to Yes Bank shares, Aamar Deo Singh of Angel One said, “The levels to watch are ₹20 on the upside and ₹16 on the downside. At the moment, Yes Bank share price is trading strongly ahead of its numbers.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 22 Jul 2023, 07:02 AM IST
