Can We Buy Yes Bank Shares Now and Wait for Growth?

The Yes Bank shares have shown resilience, thanks to the strong backing from major stakeholders, including the government, RBI, PSU banks, private banks, and foreign entities. The bank is gradually improving with better criteria and services, making it an interesting investment opportunity.

Investment Strategy: Keep Buying via SIP Mode

For those interested in investing in Yes Bank, I recommend a systematic investment plan (SIP) via a weekly, fortnightly, or monthly approach, depending on your financial capacity. By purchasing shares regularly as the share price fluctuates, you can potentially buy at lower prices and benefit from the long-term growth of the bank.

Avoiding Yes Bank Shares: Consider Larger Cap Banks

While Yes Bank is showing signs of recovery, it is currently surrounded by significant negativity due to past issues. If you are apprehensive, you might want to consider large cap banks like ICICI Bank or Kotak Mahindra Bank for a more stable investment.

When to Buy and Sell

My recommendation is to buy Yes Bank shares when the price falls to Rs 12 or lower and to exit the investment when the stock shows a 20% gain from the buying price. While there will be fluctuations in the next 2 years, holding through these periods could lead to substantial gains.

Recovery Plan and Future Prospects

Yes Bank has recently taken important steps towards recovery, including revising its risk management framework and initiating recovery proceedings for non-performing assets (NPAs). The management is focused on transforming the bank and addressing its previous mistakes.

Recent financial reports indicate an increase in deposits and a projected decrease in NPAs due to the new measures. While the stock price may fluctuate in the short term, it has potential to reach the 40-50 band range over a 2-3 year period.

Note: This is an advisory based on current market conditions. It is essential to consult with your financial advisor and conduct thorough analysis before making any investment decisions.