Yes Bank shares witnessed heavy sell off during first day of trade post-Q4 results announcement. Yes Bank share price today opened downside and went on to hit intraday low of ₹15.50 apiece levels on NSE, logging around 4 per cent dip from its Friday close of ₹16.20 apiece levels.
According to stock market experts, Yes Bank reported rise in provisioning that has gone down negative among the Dalal Street investors and observers. Experts went on to add that Indian stock market was expecting improvement in provisioning whereas the bank reported higher provisioning, which signals that even after being governed by the State Bank of India ((SBI) for last three years, Yes Bank has failed to locate its bad debts and hence they are forced to continue with higher provisioning.
Why Yes Bank shares falling after Q4 results?
Speaking on Yes Bank share price fall in early morning deals, Ravi Singhal, CEO at GCL Broking said, “Major reason for fall in Yes Bank share price today can be attributed to higher provisioning reported by the private lender in its Q4 results. Indian markets were expecting lower provisioning after the end of three years lock-in for major banks including SBI. However, after being governed by more than three years, Yes Bank failed to locate or find out its bad debt. This is going to remain a serious concern for Yes Bank and hence its stock is under sell off heat today.”
On major levels in regard to Yes Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Yes Bank shares have immediate support placed at ₹15.25 apiece levels whereas it is facing resistance at ₹18.50 apiece levels. Bullish or bearish trend can be assumed on the basis of breakage of breakage of either side of the levels of Yes Bank stock. Those who have Yes Bank in their portfolio are advised to maintain strict stop loss at ₹15 whereas fresh investment is advised only above ₹18.50 levels.”
Yes Bank share price outlook
Ravi Singhal of GCL Broking said that Yes Bank shares may go up to ₹22 to ₹24 once it closes above ₹18.50 apiece levels. However, in case, it breaches its current support placed at ₹15, it may go up to ₹12.50 to ₹13 apiece levels in near term.
Yes Bank has announced its Q4FY23 results on Saturday reporting dip in net profit from ₹367.46 crore to ₹202.43 crore in Q4FY23, logging near 45 per cent decline in year-on-year (YoY) terms. However, on quarter-to-quarter (QoQ) basis, Yes Bank reported around 293 per cent rise against Q3FY23 net profit of ₹51.52 crore. Blaming the rising provisioning for dip in net profit, Yes Bank said that it has managed to report full year profitability for second straight year despite rise despite accelerated provisioning.
