Yes Bank share price slips over 15% after reporting 91% plunge in Q1 profits! You can do this

Yes Bank share price has witnessed a serious correction of over 15% on Thursday, a day after reporting its first quarter results. Though the shares of private lender fell around 20% in the morning trade, touching Rs 79.15 on NSE (52 week low). The sentiment for the scrip is negative due to a YoY plunge in net profits by 91% in Q1 of FY19-20. 

Derivatives & Technical Analyst, Chandan Taparia, Motilal Oswal told Zee Business Online, ''Yes Bank share price seems weak on the technical front, better to avoid at present. Strong barrier at Rs 100, no trade call suggested anywhere below this level, though it shows a support at Rs 75 to Rs 80.''

Yes Bank has reported a net profit of Rs 113.76 crore for the quarter ended June 2019, on account of Rs 6,232 crore addition to the non-performing assets, leading provisions to climb further. The bank's net profit in the corresponding quarter last year was Rs 1260.36 crore, while it posted a net loss of Rs 1,506.64 crore in the preceding quarter. 

Private lender Yes Bank has been in the news since the entry of new CEO Ravneet Gill under challenging circumstances, after RBI refused to extend the tenure of Fromer CEO Rana Kapoor. June's 2019 quarter is the second consecutive quarter that witnessed huge hits in profits. 

Sr Equity Technical Analyst, Simi Bhaumik said that this could not be the right time to buy any fresh quantity, as the stock has breached the 52 week low today. Anyone who holds Yes Bank should remain hold, as it may bounce-back in case it touches Rs 100-105 levels, she added. 

Prabhudas Lilladher has maintained a hold rating with a target price of Rs 101. As far as Q1FY20 Results are concerned, broker report says, ''Risks factored in but recognition not over yet.''

The bank's fresh slippages at Rs 6,232 crore nearly doubled as against Rs 3,408 crore in the previous quarter, resulting in the gross non-performing assets ratio increasing to 5.01 per cent as compared to 1.31 per cent in the year-ago period and 2.91 per cent three months ago. 

As far as the total provisions of the lender are concerned, they have also climbed to Rs 1,784.1 crore, up nearly three times from last year's same quarter provisions of Rs 625.70 crore. While in the March quarter bank reported Rs 3,661.70 crore provisions.

At 13.45 hrs, the Yes Bank's stock was trading at Rs 85.15 on NSE, down by 13.25 or 13.47%. According to most of the analysts on street, as of now the pain on the non-performing assets front might continue for some more time for Yes Bank and it may take some time for the lender to settle.