Yes Bank Shares Surge By 5%, Here’s What Drove the Market Optimism

Mumbai: Yes Bank's shares surged by 5 per cent on April 21, 2025, reaching Rs 19.01 — the highest level in two days. The rally comes after the private sector lender reported impressive Q4 results, indicating a steady turnaround in its financial health after years of struggle.

Major Improvement in Asset Quality

One of the key highlights from the quarterly results is the significant improvement in asset quality. The Net NPA dropped to 0.3 per cent from 0.5 per cent in Q3, marking the lowest level since March 2020. The Gross NPA remained stable at 1.6 per cent, suggesting consistency in asset performance. Controlled slippages of Rs 1,223 crore, equivalent to 2 per cent of advances, and a drop in provisions by 23 per cent QoQ to Rs 318 crore have further strengthened investor confidence.

CEO's Optimistic Outlook

Yes Bank’s CEO, Prashant Kumar, highlighted a sharp improvement in overall financial performance. He noted that the falling NPAs, enhanced CASA ratio, and growing Net Interest Margin (NIM) reflect a solid growth path. The balance sheet shows early signs of sustainable strength, with risk controls and provisions now well managed.

What It Signals for Investors?

Market analysts view these numbers as a sign that Yes Bank is gradually regaining financial stability. With rising deposit and advance growth, the bank is beginning to look attractive to long-term investors. Experts believe that if the bank can maintain its current pace of improving NIM and profitability over the next few quarters, the stock could see further upside. The revival of transaction growth, investment appetite, and asset quality may put Yes Bank back on the radar of institutional and retail investors alike.