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  • Can we buy Yes Bank Shares at current level of 28

    Are you thinking of buying bank shares for investment? Want to know if it is safe to buy these shares and is there any risk and reward associated with it? Here, on this page our experts have responded to your query.

    Rana Kapoor's private bank Yes Bank is on news now a days. The share price of Yes Bank tank to 5.55 rupees per share recently as bank is in crisis and its founder Rana Kappor arrested and under enforcement or ED custody. However country's largest lender SBI came forward to rescue Yes Bank by investing 2400 crores to 10000 crores. We thank RBI, SBI and Govt of India for this move.

    Now my question is shall I invest on Yes Bank at current level of 28.80 ? What would be risk and reward associate with Yes Bank?
  • Answers

    3 Answers found.
  • Whenever there is a bad news about a company or other such entity, there is a strong reaction in the share market and the share of the company starts falling and in some cases even nosedives. This has happened with many companies in past and though some of them had recovered but some went into the oblivion. Same thing has now happened with Yes Bank and in a worry and anxiety people have sold its shares in the market which has made it to quote so low now. The financial analysts and economic experts who study the data of the companies know well as how to interpret these lows in terms of their future prospects. There is no hard and fast rule here but once the RBI and SBI have come to the rescue of the bank then it is clear that the share prices would now look up albeit in a slow and cautious ways. So, a prudent investor can definitely take a decision to invest in them at least a part of their kitty. No one knows whether it would go to its earlier levels or not but after some time of settlement it would definitely go up to some significant levels where investor can book the profit. Lately the sentiments in the share market are bearish and in that situation it might take more time in going up in its value. If we recall there was a big problem with Satyam Computers a few decades ago and its share prices plummeted badly in the share market. Same question was being asked at that time by many investors and some people bought those shares at the rock bottom and made some handsome gains in that though it was finally took over by some other company and converted shares were provided to the investors. Another example is the big wind energy company NEPC Mecon which during the crash of share market in 1994-97, nosedived from Rs 450 per share to less than Rs 50 in a few days and then that company is not seen and the last quote I saw for it was less than Rs 10.

    So one has to consider various things supported by the news and data about the company before taking up an investment decision of this type. Please note that I have no interest in the Yes Bank and my answer is based on my experience and knowledge about the share market.

    Knowledge is power.

  • Whenever there is a problem in the financial status of the company it is common that the share prices will come down drastically. Actually, it is due to the selling of their shares by the investors because of their anxiety. Because of this reason, the share price will come down. Some intelligent people will take a calculate risk and purchase some shares at that low price. Why they purchase? They think that some companies which are doing very well will come and take over the company and again bring it back to profits. In many cases, this thinking will go correct. Very rarely it goes wrong. My Personal experience is that when a company known to me is not doing well I purchased the shares of the company at a very low rate. As I know the value of the company and company products I have taken these shares. The rate went up well in no time and I got a good profit.

    Now coming to yes bank, definitely, the rates came down due to the sudden revelation of the financial position of the bank. Many people sold their shares at a very low price. Now SBI is coming forward and some other big people are also coming forward to pump in money. So there is every chance that the price will go up. I think we should go for a limited purchase of these shares so that by any chance we lose also we will not lose heavily. I am also in the thinking of purchasing some shares.

    always confident

  • The shares of Yes Bank has nosedived to a low level the presently being Rs 28/- per share. Such a drastic fall is the result of the mismanagement of the funds absolutely no control of NPA. This scenario has frightened the share investors badly but again there is a good news in the sense that SBI has come with the latest infusion of funds and is interested for strengthening its financial status. Moreover, RBI is promising the customers of the Bank for the safety of their money deposited with the banks.
    These factors would arrest its further slide downwards because of the bad debt.
    However, you should stick to the optimistic view this time. After your investment in the shares of Yes Bank, you need not worry for the further falls if being noticed by you.
    Currently the out break of Corona Virus is responsible for the slump of share prices of the major countries such as Japan, Korea, China etc. Once this episode takes a better turn, the share price of the Yes Banks are sure to improve in the time ahead say after a couple of months.

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