Nomura has maintained its Neutral call on Yes Bank with a target price of ₹17 per share, implying a potential downside of 22% from the current market price of ₹21.89. The bank’s pre-Q2 update highlights strong deposit growth, particularly led by CASA deposits.
Nomura expects Yes Bank to deliver a return on assets (RoA) of 0.5% in FY25 and 0.8% in FY26, along with a return on equity (RoE) of 4.5% and 7.5% during the same period. However, the bank’s return profile, although on an improving trajectory, remains significantly lower than its peers.
Additionally, Nomura noted that Yes Bank is trading at 1.4x its one-year forward book value per share (BVPS), which it believes already reflects the bank’s positive outlook.
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.
