Yes Bank Shares Sluggish: 5 Reasons Why Despite SMBC Entry, What's Next?

• Yes Bank's share remains sluggish despite Japanese giant SMBC acquiring a 20% stake, contrary to market expectations for improved governance and stability.
• Key reasons include persistent profitability concerns (low NIM, RoA, RoE, AT-1 bond burden) and SMBC's denial of a controlling stake, limiting management change.
• Rumors of a 51% SMBC acquisition caused a 44% surge, followed by a 10% drop upon denial, highlighting news-driven volatility over fundamentals.
• Valuation appears cheap at 1.2x P/B, but profit recovery is incomplete, and a low CASA ratio (below 30%) signals underlying weakness.
• An ongoing SEBI investigation into disclosure-related matters adds uncertainty, suppressing short-term investor sentiment.

Why It Matters: Yes Bank's long-term potential hinges on clear profit improvement, while short-term remains volatile due to fundamental issues and market sentiment.