At a Glance
Yes Bank – once the poster child of India’s private banking boom, then a full-blown financial horror story – has staged a minor recovery. With net NPAs now below 1%, consistent profits, and FII love slowly trickling in, the stock is up 25% from its lows. But is the comeback real, or are we watchingScam 1992: The Sequel?
1. 📉 Flashback: From Rana’s Empire to RBI’s ICU
Ah, 2018.
- Yes Bank was flying high, trading at ₹380, growing like a fintech startup.
- Rana Kapoor wasIndia’s Rockstar Banker™with a line of credit longer than Delhi’s Ring Road.
Then came:
- 👮♂️ Credit rating downgrades
- 🤐 Concealed NPAs
- 🏦 A literalRBI-led rescuein March 2020
- 💉 State Bank of India became its reluctant godfather with 48% stake
Since then? A clean-up job dirtier than Ganga ghats after Chhath Puja.
2. 🔍
The Numbers – Like Your Ex, Improving but Still Not Marriage Material
| Metric | FY20 | FY21 | FY24 | FY25 |
|---|---|---|---|---|
| Net Profit (₹ Cr) | -16,433 | -3,489 | 1,285 | 2,446 |
| Gross NPA % | 16.8% | 15.4% | 1.6% | 1.6% |
| Net NPA % | 5.0% | 4.5% | 0.5% | 0.3% |
| CASA Ratio | 30% | 27% | 30.3% | 32.1% |
| ROE | -68% | -13% | 3% | 5% |
✨Turnaround? Yes. But HDFC Bank it ain’t.
- EPS has improved to ₹0.78 – a 3x jump over FY23.
- Operating profit is back in black after years of red.
But…
- Financing margin is still negative.
- Net Interest Margin (NIM)hovers around 2.6% — miles behind ICICI or Axis.
3. 🚩 Red Flags: Should You Be Worried?
Yes. Here’s why:
- 📉Low ROE– Just 5%, while peers flaunt 15%+
- 💣Contingent Liabilities– ₹8.11lakh crore! That’s more than India’s defence budget.
- 🩺Interest coverage still weak
- ❌
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