Check Before You Invest : Yes Bank Ltd

BSE: 532648 NSE: YESBANK ISIN: INE528G01035

| Sector: BFSI | Industry: Bank - Private

Snapshot

Q.1 Which industry/sub-sector does Yes Bank Ltd belong to?

Yes Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q.2 Is Yes Bank Ltd a good quality company?

Yes Bank Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Yes Bank Ltd undervalued or overvalued?

Yes Bank Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Yes Bank Ltd a good buy now?

Yes Bank Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Yes Bank Ltd?

Yes Bank Ltd Total Income growth is 12.39% for FY-2025, which is above its 5-year CAGR of -0.63%, indicating faster growth.

Q.2 Return on Assets of Yes Bank Ltd?

Yes Bank Ltd Return on Asset is 0.6%, which is above its 5-year historical median of 0.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NIM%	2.49	2.49
PPOP%	52.48	-34.4
RoA%	0.6	0.3

Q.3 Return on Equity (ROE) of Yes Bank Ltd?

Yes Bank Ltd Return on Equity is 5.4% for FY-2025, which is above its 5-year historical median of 3.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Yes Bank Ltd?

Yes Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 52.48% for FY-2025, which is above its 5-year median(-34.4%), indicating increasing margins.

Q.5 Net Interest Margin of Yes Bank Ltd?

Yes Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.49% for FY-2025, which is in line with its 5-year median( 2.49%), indicating stable margins.

Q.6 Total Asset growth of Yes Bank Ltd?

Yes Bank Ltd Total Asset growth is 4.42% for FY-2025, which is below its 5-year CAGR of 10.43%, indicating slower growth.

Q.7 Cost to Income ratio of Yes Bank Ltd?

Yes Bank Ltd Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 71.3% for FY-2025, is in line with its historical 5-year median of 71.3%, indicating stable cost management.

Q.8 Capital Adequacy ratio of Yes Bank Ltd?

Yes Bank Ltd Capital Adequacy ratio (CAR) is 15.6% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.9 Asset Quality of Yes Bank Ltd?

Yes Bank Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 1.6% for FY-2025, which is below its 5-year median 2.17%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.3% which is below its 5-year median( 0.83%), indicating improving asset quality.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Yes Bank Ltd?

Promoters hold 0.00% of the Yes Bank Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Yes Bank Ltd vs Industry Peers?

Yes Bank Ltd AUM CAGR is 10.43%, compared to the 5-year industry median CAGR of 12.53%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Yes Bank Ltd vs industry peers

Yes Bank Ltd profit metrics are in line with the industry median level of 7.74%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM%	2.49	3.84
PPOP%	52.48	18.17
RoA%	0.6	1.2

Q.3 Operating efficiency of Yes Bank Ltd vs industry peers?

Yes Bank Ltd Cost to Income (49.5) is below the industry median of (53.8); while the current ROE (3.1) are below than the 5-year average Industry ROE (10.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM%	2.49	3.84
PPOP%	52.48	18.17
RoA%	0.6	1.2
Cost to Income%	71.3	53.8
ROE%	5.4	10.2

Valuation & price assessment

Q.1 Stock return of Yes Bank Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -20.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-20.2%	6.5%	7.7%	12.5%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	17.99	38.93	13.38
Price to Book	1.22	1.23	1.37
Price to Sales	2.07	2.06	1.77
EV to EBITDA	21.59	33.88	7.70

Q.4 Valuation ratios of Yes Bank Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.22% is lower than its historical median of 1.23%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Yes Bank Ltd return on invested capital (ROIC) is 14.72% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

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