{"id":33972,"date":"2024-07-10T14:08:19","date_gmt":"2024-07-10T14:08:19","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/yes-bank-share-price-retreats-despite-fab-mufg-interest\/"},"modified":"2024-07-10T14:08:19","modified_gmt":"2024-07-10T14:08:19","slug":"yes-bank-share-price-retreats-despite-fab-mufg-interest","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/yes-bank-share-price-retreats-despite-fab-mufg-interest\/","title":{"rendered":"Yes Bank share price retreats despite FAB, MUFG interest"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Yes Bank share price has suffered a harsh reversal this week, becoming one of the worst performers in India. The stock, which jumped to a high of \u20b927.44 last week, has dropped by almost 10% to \u20b924.60.<\/p>\n

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Yes Bank is attracting bids<\/h2>\n


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Yes Bank is attracting attention from other Asian banks as it seeks to sell a stake to boost its balance sheet.<\/p>\n

According to Bloomberg<\/a>, First Abu Dhabi Bank (FAB) is one of those interested and is prepared to take as much as 51% stake in the company. At that valuation, it means that it would need to spend at least $5 billion.<\/p>\n

Other companies that are interested in the company are Mitsubishi UFJ Financial Group (MUFG) and Sumitomo. Such a sale would benefit State Bank of India (SBI), which is the biggest shareholder with a 24% stake.\u00a0<\/p>\n

A key hindrance to a potential deal is that its chairman, Dinesh Khara\u2019s tenure ends in August and he will likely be replaced by Challa Sreenivasulu Setty.\u00a0<\/p>\n

Yes Bank\u2019s turnaround is continuing<\/h2>\n


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The interest of Yes Bank by Asian companies comes at a time when there is an ongoing frenzy of deals in India, one of the fastest-growing economies.<\/p>\n

At the same time,many Asian and Middle East banks are considering expanding overseas to diversify their earnings. For example, Mitsubishi Bank is said to eye a minority stake in HDFC Bank while First Abu Dhabi Bank has courted Standard Chartered before.<\/p>\n

The fact that foreign companies are considering a bid for Yes Bank is a sign that the company is doing well after being rescued in 2020.<\/p>\n

As part of the rescue plan, the company was forced to sell a stake in the biggest Indian banks like ICICI, HDFC, and SBI. Some of these banks have pared back their stakes after the lock up period ended.<\/p>\n

The company also created bad bank with some of its riskiest loans and sold it to JC Flowers, a restructuring expert. As a result, the remaining bank was less riskier than how it was before 2020.<\/p>\n

Yes Bank also sold shares and raised funds from private equity companies like Advent and Carlyle. As a result, the company had a strong balance sheet as it continues its turnaround strategy.<\/p>\n

At the same time, Yes Bank is said to be about to implement broad layoffs in a bid to save operational costs.\u00a0<\/p>\n

The most recent results showed that Yes Bank\u2019s net profit in the previous quarter rose by 123% YoY to \u20b94.52 billion. For the year, the company made \u20b912.5 billion, a 74% annualised increase while deposits continued rising.\u00a0<\/p>\n

Yes Bank share price forecast<\/h2>\n


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YES chart by TradingView<\/a><\/p>\n

I wrote about Yes Bank last week<\/a> and warned that it could suffer a reversal, which has happened. The stock has dropped below the 38.2% Fibonacci Retracement point.<\/p>\n

Most importantly, despite the retreat, the stock remains above the 50-day and 100-day Exponential Moving Averages (EMA). It has also remained between the lower and the first support of the Andrew\u2019s pitchfork tool.\u00a0<\/p>\n

At the same time, the MACD indicator has pointed upwards and crossed the neutral point at zero. The Relative Strength Index (RSI) has moved from the overbought point to 68.<\/p>\n

The stock has also formed a small inverse head and shoulders pattern. Therefore, there is a likelihood that the stock will have a bullish breakout as investors wait for its stake sale.\u00a0<\/p>\n

If this happens, the next point to watch will be at INR 27.44, its highest point this month. A move above that level will point to more upside as buyers target the key psychological point at INR 30.<\/p>\n

\"Yes<\/p>\n

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(Originally posted on : Invezz ) Yes Bank share price has suffered a harsh reversal this week, becoming one of the worst performers in India. The stock, which jumped to a high of \u20b927.44 last week, has dropped by almost 10% to \u20b924.60. Are you looking for signals & alerts from pro-traders? Sign-up to Invezz […]<\/p>\n","protected":false},"author":32,"featured_media":33973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[38],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/33972"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=33972"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/33972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/33973"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=33972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=33972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=33972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}