In a notable development on July 4, 2025, Yes Bank Shares Rebound nearly 1% from their intraday lows following the release of the lender’s Q1FY26 business update. Despite a cautious market sentiment and mixed financial metrics, the stock showed resilience, offering a glimmer of optimism for investors closely tracking this private sector bank’s turnaround story.
The recovery comes amid a broader narrative of operational strain in select areas such as loan growth and deposits. However, improvements in key ratios like CASA and Credit-to-Deposit (CD) ratios provided some much-needed stability. The latest price action signals investor willingness to stay engaged with the counter as the bank navigates through its operational challenges.
Yes Bank Shares Rebound Following Intraday Decline
Early in the July 4 session, Yes Bank shares opened on a weak note, falling over half a percent to touch a low of ₹20 per share. However, as the market absorbed the provisional business update numbers, Yes Bank Shares Rebound nearly 1% intraday, reaching ₹20.19 by mid-session.
This price action marks a continuation of recent volatility in the stock. Despite the rebound, Yes Bank shares remain considerably below their 52-week high of ₹27.41, highlighting the mixed sentiment that has persisted over the past year.
Q1FY26 Business Update: Weakness in Loans and Deposits
The bank’s business update for the quarter ended June 2025 painted a mixed picture. Advances dropped by 2% quarter-on-quarter to ₹2.41 lakh crore from ₹2.46 lakh crore. Deposits also fell by 3% sequentially, settling at ₹2.75 lakh crore versus ₹2.84 lakh crore in the March quarter.
Though these declines reflect ongoing headwinds in asset and liability growth, the market appeared to have factored in these figures. The modest improvement in CASA and CD ratios, however, offered a silver lining and supported the narrative where Yes Bank Shares Rebound in the wake of balanced-sheet stability.
CASA and CD Ratios Offer a Glimmer of Resilience
The bank’s Current Account Savings Account (CASA) ratio—a critical metric for assessing low-cost deposit mobilisation—stood at 32.7% as of June 2025. This marks an improvement from 30.8% recorded in the same period last year. However, it was slightly lower than 34.3% registered at the end of the March quarter.
On the other hand, the Credit-to-Deposit (CD) ratio—a measure of a bank’s lending activity relative to its deposits—increased to 87.5% from 86.5% a year ago. This uptick suggested that, despite subdued deposit growth, the bank was efficiently deploying its deposit base. The stability in these ratios provided a crucial cushion that helped Yes Bank Shares Rebound from early-session losses.
Q4FY25 Financial Highlights: A Strong Base for Recovery
Adding context to the current business update, it’s important to revisit the Q4FY25 financials, where the bank delivered a robust performance. Net profit surged 63.3% year-on-year (YoY) to ₹738.1 crore from ₹451.9 crore in the year-ago quarter. This was supported by a 5.7% YoY rise in Net Interest Income (NII) to ₹2,276.3 crore.
The Gross Non-Performing Assets (GNPA) ratio remained unchanged at 1.6%, while Net NPA improved sequentially from 0.5% to 0.3%. Moreover, the Net Interest Margin (NIM) rose slightly to 2.5% from 2.4%, with non-interest income growing by an impressive 10.9% YoY. These positives played a significant role in building investor confidence, setting the stage for instances where Yes Bank Shares Rebound even on the back of moderate operational updates.
Stock Performance: Volatile but Promising Signs
Yes Bank’s share price trajectory has been highly volatile over the past year. From a 52-week high of ₹27.41 in July 2024, the stock slipped to a low of ₹16.02 by March 2025. In the 12 months since, the stock has declined nearly 16%.
However, since March 2025, the stock has shown tentative signs of recovery. It gained 21.2% in May, 5% in April, and 1% in March, after falling 13% in February and 2% in January. While June 2025 saw a modest decline of 5.3%, today’s instance where Yes Bank Shares Rebound suggests that investor sentiment may be slowly turning positive, contingent on consistent operational improvements.
What’s Supporting the Recovery in Yes Bank Shares?
Several factors contributed to today’s intraday price rebound:
- Stable CASA and CD Ratios: The improvement in CASA to 32.7% and the rise in the CD ratio to 87.5% signal underlying operational resilience despite headline weakness in loans and deposits.
- Profitability and Asset Quality: The strong Q4FY25 numbers, particularly the surge in net profit and improvement in asset quality, provide a solid base for confidence, making it easier for Yes Bank Shares Rebound on positive cues.
- Broader Market Sentiment: The rebound was also partly aided by improving sentiment in the broader banking and financial services sector on expectations of steady credit growth in FY26.
- Technical Support: Yes Bank shares approached strong technical support levels around ₹20, which triggered some bottom-fishing by short-term traders and value investors.
Analyst Views on Yes Bank’s Prospects
Analysts remain cautiously optimistic about Yes Bank’s prospects. While operational challenges persist, they acknowledge the progress in profitability, asset quality, and capital adequacy. The consistent improvement in NIM and recovery in non-interest income provide a credible foundation for future performance.
Experts suggest that if the bank can arrest the decline in advances and deposits while continuing to improve low-cost deposit mobilisation, there will be further opportunities for Yes Bank Shares Rebound in subsequent quarters.
Caution Remains Despite the Rebound
Despite today’s recovery, investors are advised to approach the stock with measured optimism. The persistent decline in loan and deposit books is a cause for concern, and while ratios have improved, a sustainable revival in business growth is necessary to drive long-term value.
Market participants will closely track Yes Bank’s Q2FY26 business update and quarterly earnings for evidence of growth momentum. Until then, sharp movements like the one where Yes Bank Shares Rebound today are likely to remain range-bound, driven by technical factors and market sentiment.
Conclusion
The instance where Yes Bank Shares Rebound by nearly 1% following the Q1FY26 business update is a significant development in the ongoing turnaround story of this private sector lender. While challenges persist on the loan and deposit fronts, improvements in operational ratios, profitability, and asset quality provide a much-needed cushion.
For investors, today’s recovery highlights the market’s willingness to reward signs of stability, even amid broader headwinds. However, sustained upward movement in the stock will require consistent improvement in business metrics over the coming quarters.
As Yes Bank continues its restructuring journey, future updates and earnings reports will be critical in determining whether Yes Bank Shares Rebound episodes like today can transition into a sustained, long-term recovery. For now, investors should remain vigilant, balancing optimism with prudence.