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If you have these shares, then you may incur huge losses, The brokerage firm expressed apprehension.

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Stock Market News: After this move of the central bank, Japan's financial institution SMBC i.e. Sumitomo Mitsui Banking Corporation has got the right to appoint its representative in the board of Yes Bank.

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Yes Bank Share: In the stock market, investors always bet on those stocks which have the possibility of rising. Today we are going to talk about that stock whose price may fall in the coming days. In such a situation, if you already have these stocks, then you may have to face losses. Actually, RBI has allowed amendment in the Article of Association of Yes Bank. In the month of May itself, the share purchase agreement has been signed by SMBC so that it can buy its stake in it.

Why can these shares go down?

After this move of the central bank, Japan's financial institution SMBC i.e. Sumitomo Mitsui Banking Corporation has got the right to appoint its representative in the board of Yes Bank. Even though this change is being considered a positive sign for the bank in the long run, market experts and brokerage firms have a different opinion about this.

If we believe the brokerage firm Emkay Global, then Yes Bank has set a target price of Rs 17 for its stocks and has maintained a sell rating on the stock. It says that this represents a decline of about 19.5 percent. According to the brokerage firm's report, Yes Bank's core profitability is weak, due to low margins, slow pace of the bank and high operating costs.

What are the positive signs in Yes Bank?

In fact, Emkay Global believes that SMBC's entry into Yes Bank's board can lead to major changes in the future. The reason for this is that SMBC's participation can give the bank a new direction on the fronts of management reform, capital access, portfolio clean-up and governance.

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