A study of Yes Bank shares : “In depth analysis of growth opportunities and risk”

Table content
Chapter No. Title Page No.
01 1.1 Introduction
1.2 Abstract
1.3 Objectives of the
study
1.4 Need of the study
1.5 Scope of the study
1.6 Research
Methodology
1.7 Limitation
02 Review of Literature
03 Company Profile
04 First objective
05 Second objective
06 Data Analysis and
interpretation
07 Research Finding and
suggestions
 CHAPTER-1

1.1 Introduction
Yes Bank Limited is a private sector bank headquartered in Mumbai, India and was founded by
Rana kapoor and Ashok kapoor in 2004.It offers wide range of banking and financial products
for corporate and retail customers through retail banking and assets management services. On 5
March 2020in an attempt to avoid the collapse of the bank, which had an excessive amount of
the bad loans, the Reserve bank of India took control of it. RBI later reconstructed the board and
named Prashant Kumar, former chief financial officer of SBI, as new MD and CEO at Yes Bank.
Yes Bank is owned by State Bank of India who has a 26.14% stake in the company as of 2023.

1.2 Abstract
The objective of this project is to undertake an in-depth analysis of the share investment
opportunity offered by YES Bank. In recent years, the administration and operations of YES
Bank, an Indian private sector bank have undergone major changes. The bank experienced
difficulties in 2019, which caused a sharp drop in the price of its shares. The bank has since
implemented efforts to deal with these issues and enhance its financial performance.
To assess the share investment opportunity, this study will examine the financial performance
and current developments of YES Bank. To evaluate the bank’s financial situation and potential
for future growth, the study will look at its financial statements, including its income statement,
balance sheet, and cash flow statement. To assess the bank’s capacity to produce value for its
shareholders, The research will also examine its competitive positioning and growth strategy.
Further analysis of the macroeconomic and regulatory context in which YES Bank operates will
be done as part of the study to Analyse possibilities for the bank. In order to determine how the
market views the performance of the bank, the study will also examine stock market patterns and
investor sentiment towards YES Bank shares.
For investors interested in buying shares of YES Bank, the study’s findings will be helpful.
Investors will be able to make an educated investment decision thanks to the study’s insights into
the bank’s financial situation, growth possibilities, and potential risks and opportunities. The
overall goal of this initiative is to help investors better grasp the investment potential given by
YES Bank shares and to offer insightful information.

1.3 Objectives of the study

1. conduct ratio analysis with current ratio, Debt-Equity ratio, Debt-Asset ratio, ROE and ROA.
2. Find the net profit margins and operating profits margins of yes bank for five consecutive
year

1.4 Need for the study

1 Offers information about the financial performance of Yes Bank
2 Finds prospects for the bank's growth
3 assesses the dangers that Yes Bank might experience
4 contrasts Yes Bank's performance, expansion prospects, and risks with those of its rivals
5 Offers suggestions for enhancing the performance and competitiveness of the bank
6 Aids stakeholders in making knowledgeable choices about investment possibilities and
possible dangers
7contributes to the bank's long-term viability and performance.

1.5 Scope of the study

1 introduces Yes Bank, its background, mission, goals, core principles, business model, and
activities.
2 Examines the income statement, balance sheet, and cash flow statement of Yes Bank's
financial statements.
3 Evaluates the efficiency, profitability, liquidity, and financial stability of Yes Bank.
4 identifies opportunities for Yes Bank's prospective expansion, such as broadening its product
line, breaking into new markets, growing its clientele, and enhancing operational effectiveness.
identifies and evaluates the potential risks that Yes Bank may experience, including credit risk,
market risk, liquidity risk, operational risk, regulatory risk, and reputational risk.
6 Evaluates the performance, expansion prospects, and dangers of Yes Bank in comparison to its
rivals, including other private sector banks, public sector banks, and foreign banks operating in
India.

1.6 Research Methodology

1.6.1 RESEARCH APPROACH AND DESIGN
The fundamental analysis of Yes bank from the data that collected from the online sources. For
the analysis we have to collect the financial statements of the bank in the five consecutive years
(2018-2022). The fundamental analysis done for the purpose of the investment. This is in the
view of an investor who is interested to invest in the IndusInd bank, he/she need to analyse the
company. So we can analyse the company from the available previous year data like financial
statements, ratios, return from their paid out as return. Only by studying these result he/she can
make the apt decision on investment and portfolio management. The analysis has been done
through the analysis of the financial statements of previous years. We can collect the data from
the online sources balance sheet, profit and loss account, trading account and some ratios. With
that we can go for a graphical analysis that can understand the situation easily. In this analysis
we were taken different tools which are the most important ones having vital role in the
investment decision Tools used
1. Net profit 2. Debt-Equity Ratio 3. Debt-Asset Ratio 4. ROA (Return on Asset) 5. ROE (Return
on Equity) 6. Liquidity Ratio 7. SWOT analysis

1.6.2 SOURCE OF DATA

The study based on secondary data collected from NSE. The data on monthly and yearly market
prices of leading sector listed in NSE have been collected. In addition the other sources are also
used for data collecting like newspaper and internet (www.nseindia.com,
www.economictimes.indiatimes.com, www.capitalmarket.com and www.moneycontrol.com).
Published data will be available in Newspapers, Websites, Journals, books, Reports by
management, scholars, researchers, brokers etc.., The reason behind choosing the monthly prices
is that short term fluctuations in the market prices of the stocks due to internal and external
factors can be catch hold off. Through it is possible to make much an analysis using daily prices;
collection of data for long period of time is not possible. Hence the monthly prices are
considered

1.6.3 DATA COLLECTION METHOD

The sample of the stock for the purpose of collecting secondary data has been selected on the
basis of judgemental Sampling. The private sector banks holds a vital role in Indian economy. So
the banking sector is a growing area. The IndusInd bank is one of the newest private sector bank
in India and showing growth also The data collected only from the online sources.

1.6.4 DATA ANALYSIS TOOLS

As mentioned above the tools used for the analysis are net profit, eps, capital yield, etc.
1. Net Profit
The net profit of a company, organization or any individual or entity that does business, is its
profit after operating expenses and all other charges including depreciation, interest, and taxes
have been deducted from total revenue.
2. Debt Equity Ratio
The debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by
shareholder equity. These numbers are available on the balance sheet of a company’s financial
statements. The ratio is used to evaluate a company's financial leverage. The D/E ratio is an
important metric used in corporate finance. It is a measure of the degree to which a company is
financing its operations through debt versus wholly-owned funds. More specifically, it reflects
the its ability of shareholder equity to cover all outstanding debts in the event of a business
downturn.
Debt/ Equity = Total Liabilities
Total shareholders Equity

3 Debt-Asset Ratio
The debt to asset ratio is a leverage ratio that measures the amount of total assets that are
financed by creditors instead of investors. In other words, it shows what percentage of assets is
funded by borrowing compared with the percentage of resources that are funded by the investors.
Basically it illustrates how a company has grown and acquired its assets over time. Companies
can generate investor interest to obtain capital, produce profits to acquire its own assets, or take
on debt. Obviously, the first two are preferable in most cases. This is an important measurement
because it shows how leveraged the company by looking at how much of company’s resources
are owned by the shareholders in the form of equity and creditors in the form of debt. Both
investors and creditors use this figure to make decisions about the company. Investors want to
make sure the company is solvent, has enough cash to meet its current obligations, and
successful enough to pay a return on their investment. Creditors, on the other hand, want to see
how much debt the company already has because they are concerned with collateral and the
ability to be repaid. If the company has already leveraged all of its assets and can barely meet its
monthly payments as it is, the lender probably won’t extend any additional credit.
Debt-Asset Ratio = Total Debt /Total Asset
….

1.7 Limitations
1. This project report data collected from secondary sources only.
2. This project analysis report may not be applicable in all equity markets.
3. The accuracy of the study is based on the accuracy of the data presented in the NSE and BSE
Listings
4. Detailed study of topic was not possible due to the limited size of the project the time taken for
the study is limited.
 Chapter-2

REVIW OF LITERATURE