Update shared on 03 Dec 2025
Analysts have modestly revised their price target on Yes Bank upward to ₹18.50 per share, reflecting stable fair value assumptions along with slightly higher discount rates and future valuation multiples that support a cautiously improved outlook.
What's in the News
- Sumitomo Mitsui Banking Corporation (SMBC) has completed a series of transactions to raise its stake in Yes Bank to approximately 24.22 percent through multiple secondary share purchases from State Bank of India, HDFC Bank, ICICI Bank and CA Basque Investments, at a price of about INR 21.5 per share (Key Developments).
- The Reserve Bank of India and the Competition Commission of India have granted all key approvals required for SMBC's increased shareholding and related amendments to Yes Bank's Articles of Association, clearing the way for SMBC to nominate directors to the board (Key Developments).
- Yes Bank has scheduled a board meeting on October 18, 2025 to approve its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (Key Developments).
- An extraordinary shareholders meeting via postal ballot on October 24, 2025 will seek approvals for the reappointment and remuneration of Chairman Rama Subramaniam Gandhi, the appointment of SMBC nominees Shinichiro Nishino and Rajeev Veeravalli Kannan as non executive non independent directors, and revised variable pay packages for senior executives including MD and CEO Prashant Kumar (Key Developments).
- The board has noted the resignation of SBI nominee director Sandeep Tewari, alongside the completion of large block share transfers from SBI and other sellers to SMBC as part of the broader strategic realignment of Yes Bank's ownership (Key Developments).
Valuation Changes
- Fair Value Target per Share remains unchanged at ₹18.50, indicating no revision to the core valuation anchor despite other model adjustments.
- Discount Rate has risen slightly from about 13.43 percent to about 13.56 percent, reflecting a modestly higher required return on equity risk.
- Revenue Growth Assumption is effectively unchanged at about 16.93 percent, implying a stable view on Yes Bank's medium term top line trajectory.
- Net Profit Margin Forecast remains virtually flat at about 23.92 percent, suggesting no material change in profitability expectations.
- Future P/E Multiple has risen slightly from about 16.06x to about 16.11x, pointing to a marginally improved valuation multiple outlook in the forecast period.
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