Hold Yes Bank: target of Rs 24: ICICI Securities

ICICI Securities recommended hold rating on Yes Bank with a target price of Rs 24 in its research report dated January 18, 2026.

Broker Research

January 21, 2026 / 14:59 IST

Hold

ICICI Securities's research report on Yes Bank

Yes Bank (Yes) reported better-than-expected Q3FY26 PAT of INR 9.5bn, led by negligible credit costs amidst improved slippages and bulky SR redemptions. Yes provided INR 1.55bn on new labour code, though it also had INR 450mn tax refunds for prior periods. Loan growth was tepid, at 5% YoY; CASA growth remains superior. Despite adverse spreads, NIM improved 12bps QoQ to 2.6%, led by decline in RIDF (down to <7% of assets). While retail slippages have eased, at 3.4% levels, it remains elevated. RoA jumped to a multi-quarter high of 0.9%.

Outlook

We roll forward valuations to FY28E and maintain HOLD with a revised TP of INR 24 (vs. INR 22) alongside an unchanged target multiple of ~1.2x. Downside risk is sharp rise in delinquencies. Upside risk is strong recoveries in legacy NPA and SR portfolio. RBI has granted an in-principle (link) approval to Sumitomo Mitsui Banking Corporation (SMBC), Japan for setting-up a wholly owned subsidiary in India.

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