1. At a Glance
Yes Bank reports ₹809 Cr Q1 profit (up 59% YoY), lowest NPAs ever, and plans to raise ₹16,000 Cr. But with a 23x P/E, negative operating margins, and memories of its past sins still fresh—are investors jumping the gun?
2. Introduction with Hook
If Lehman Brothers had a Bollywood-style comeback, it would look like Yes Bank. After being the villain of Dalal Street in 2020, it’s now trying to rewrite its script as a cautious hero.
- Net Profit Q1 FY26: ₹809 Cr
- Net NPA: Just 0.3% (from double-digits a few years back)
- ROE: Still crawling at 5.44%
The question is—has the phoenix really risen, or is it still stuck in the ashes?
3. Business Model (WTF Do They Even Do?)
Yes Bank is a full-service private sector bank offering:
- Retail & corporate banking
- Credit cards, mortgages, personal & business loans
- Wealth management
- Digital banking (fast growing)
- Investment banking (well… once)
It was once a tech-savvy darling of the street. Now, it’s fighting for respect with basics—like capital adequacy, clean books, and no CEO controversies.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹30,919 Cr | ₹27,606 Cr | ₹22,702 Cr |
| Net Profit | ₹2,446 Cr | ₹1,285 Cr | ₹736 Cr |
| Net NPA | 0.3% | 0.5% | 0.83% |
| ROE | 5% | 3% | 2% |
| Deposits | ₹2.84 L Cr | ₹2.66 L Cr | ₹2.17 L Cr |
| Borrowings | ₹71,971 Cr | ₹80,508 Cr | ₹77,754 Cr |
From a bleeding disaster to a (barely) profitable bank—let’s call this a “stitch-by-stitch” recovery.
5. Valuation
CMP: ₹20.2
Book Value: ₹15.3
P/E: 23.1
ROE: 5.44%
Fair Value Range (Realistic Methods):
- P/B (1.1x–1.3x): ₹17–₹20
- P/E (18x–22x on FY26 EPS ₹1.10): ₹20–₹24
- DCF (adjusted for capital raise): ₹18–₹22
Final Range: ₹18–₹22
So, current price = fully priced. Margin of safety = negligible.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 profit up 59% YoY
- Net NPA down to 0.3% – the lowest in history
- SMBC to buy 20% from SBI and other investors
- Plan to raise ₹7,500 Cr equity + ₹8,500 Cr debt
- ESOP issuance ongoing – dilution alert
- Shareholder count >63 lakh – the retail army is still here
Upcoming Catalyst: Re-rating if performance sustains + anchor investors like SMBC stepping in.
7. Balance Sheet
| Item | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|
| Equity Capital | ₹6,271 Cr | ₹5,754 Cr | ₹5,751 Cr |
| Reserves | ₹41,562 Cr | ₹36,402 Cr | ₹34,967 Cr |
| Deposits | ₹2.84 L Cr | ₹2.66 L Cr | ₹2.17 L Cr |
| Borrowings | ₹71,971 Cr | ₹80,508 Cr | ₹77,754 Cr |
| Total Liabilities | ₹4.24 L Cr | ₹4.06 L Cr | ₹3.55 L Cr |
Less leveraged than before, but borrowings are still high vs peers.
8. Cash Flow – Sab Number Game Hai
| Cash Flow | FY25 | FY24 | FY23 |
|---|---|---|---|
| Operating | ₹6,386 Cr | ₹9,645 Cr | -₹25,816 Cr |
| Investing | ₹8,527 Cr | -₹12,453 Cr | -₹13,026 Cr |
| Financing | -₹5,651 Cr | ₹2,771 Cr | ₹11,450 Cr |
| Net Cash | ₹9,262 Cr | -₹38 Cr | -₹27,392 Cr |
Positive cash flow across the board = good sign. Just don’t ask what happened in FY23.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 | FY23 |
|---|---|---|---|
| ROE | 5% | 3% | 2% |
| ROA | 1.32% | 0.88% | 0.42% |
| Net NPA | 0.30% | 0.50% | 0.83% |
| Cost-to-Income | ~60% | ~63% | ~66% |
| CAR | ~17% (est) | ~17.1% | ~17.5% |
They’ve cleaned the books, but profitability still lags.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Net Profit | EPS | Payout |
|---|---|---|---|---|
| FY23 | ₹22,702 Cr | ₹736 Cr | ₹0.26 | 0% |
| FY24 | ₹27,606 Cr | ₹1,285 Cr | ₹0.45 | 0% |
| FY25 | ₹30,919 Cr | ₹2,446 Cr | ₹0.78 | 0% |
EPS has tripled since FY23. But still too small to throw a party (or a dividend).
11. Peer Comparison
| Bank | CMP | P/E | ROE | Net Profit (TTM) |
|---|---|---|---|---|
| HDFC Bank | ₹1,957 | 21.3 | 14.5% | ₹70,575 Cr |
| ICICI Bank | ₹1,426 | 19.2 | 17.9% | ₹52,890 Cr |
| Axis Bank | ₹1,099 | 12.2 | 16.3% | ₹27,862 Cr |
| IDBI Bank | ₹98.6 | 13.9 | 13.5% | ₹7,633 Cr |
| Yes Bank | ₹20.2 | 23.1 | 5.4% | ₹2,739 Cr |
Yes Bank is expensive relative to its peers, without the peer-level profits.
12. Miscellaneous – Shareholding, Promoters
- FIIs: 26.88%
- DIIs: 39.52%
- Public: 33.60%
- Promoters: 0% (SBI stake classified under banks, not as “promoter”)
No. of Shareholders: 63+ lakh. Welcome to India’s most over-crowded long-term holding.
13. EduInvesting Verdict™
Yes Bank is the comeback story that refuses to die. It’s not back to its 2018 glory, but it’s no longer 2020’s joke either. Profitability is inching up, balance sheet looks sane, and NPA cleanup is commendable.
But…
Valuation is rich. EPS is poor. Growth is decent. Risks still linger.
You’re not buying a diamond in the rough—you’re buying a zircon that just got polished.
Call it a “yes, but” story. Not a “yes, bank” story just yet.
Metadata
– Written by EduInvesting Team | July 20, 2025
– Tags: Yes Bank, Q1 FY26, Turnaround Stocks, Private Sector Banks, SMBC Deal
