Yes Bank share opens flat as SBI’s 3-year lock-in ends today. Buy, hold or exit?

Yes Bank share price today opened lower and went on to hit intraday low of ₹16.50 apiece within few minutes of stock market opening bell today. Similarly, three year lock-in of other banks — Axis Bank, IDFC First Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, etc. is ending on 13th March 2023, which may also spark further sell off in Yes Bank stocks. However, stock market experts believe that SBI won’t off load much of its holdings as it took exposure in Yes Bank to bail it out from the crisis. Likewise, other banks too invested in Yes Bank to help it fight against the bad loan crisis it was facing three years ago. They said that SBI and other banks will wait for Q4FY23 results and then may take any decision in regard to profit booking as these banks have exposure in Yes Bank at around ₹10 apiece levels and they are comfortably placed at more than 60 per cent return in last three years.

Speaking on Yes Bank share price outlook, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Yes Bank shares are showing strength despite three year lock-in of SBI ending today and few more banks lock-in ending in next one week. This is an indication that these banks have taken exposure in Yes Bank to bail it out from the bad loan crisis. Just because Yes Bank shares have appreciated more than 60 per cent after SBI and other took exposure, doesn’t mean immediate profit booking after the end of three year lock-in. In my opinion, these banks may wait till Q4FY23 results of Yes Bank and then only they might take any decision in regard to profit booking.”

AT-1 bond case in focus

Suggesting Yes Bank shareholders to keep an eye on developments in regard to AT-1 bond write off case at Supreme Court, Ravi Singhal, CEO at GCL Broking said, “Major hurdle for Yes Bank shares are Mumbai High Court setting aside its decision to write off AT-1 bond worth around ₹8,300 crore. The Supreme Court has stayed Mumbai High Court’s decision asking from both RBI and Yes Bank to point out the rule that allowed them to write off At-1 bond. The recent drop in Yes Bank should be seen from this angle instead of fast approaching three year lock-in of SBI or other banks.”

Yes Bank share price outlook

Advising bottom fishing in Yes Bank shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, “Yes Bank shares have immediate support placed at ₹15 apiece levels and those who have this stock in their portfolio are advised to maintain strict stop loss at ₹15. They can further accumulate if Yes Bank share come in ₹16 to ₹15.50 apiece range. Fresh buyers with high risk appetite may also indulge in bargain hunting buying Yes Bank shares in ₹15.50 to ₹16 per share range keeping stop loss at ₹15 apiece levels.”

Yes Bank share price target

Expecting bounce back in Yes Bank stock price, Anand Rathi expert said, “Yes Bank shares are looking positive on chart pattern and it may go up to ₹20 and ₹22 in short to medium term.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.