Good News vs. Hard Numbers: The Dilemma Facing Yes Bank Shareholders Today:

Yes Bank has been in the spotlight after receiving a crucial approval from the Reserve Bank of India (RBI) for significant changes to its board structure, a move that positively impacted its share price. However, amidst this development, one financial advisory firm is suggesting caution to investors.

The big news is that the RBI has given the green light for amendments to Yes Bank's Articles of Association.This essentially clears the path for Japan's Sumitomo Mitsui Banking Corporation (SMBC) to appoint two nominee directors and for the State Bank of India (SBI) to appoint one director to the bank's board. These board changes are a key step following the deal where SMBC is set to acquire a major stake in Yes Bank from SBI and seven other lenders.

While the entry of a global banking giant like SMBC is seen as a positive step for Yes Bank's governance and future, not everyone is convinced about the stock's current value.

Financial firm Emkay Global has maintained its 'Sell' rating on Yes Bank shares, setting a price target of ₹17. The firm's analysts believe the stock's current valuation is too high when compared to its underlying profitability, which they describe as "sub-par. Despite some positive signs, Emkay Global points to the bank's still-recovering financial health and considers the stock to be richly valued at its current levels.

So, while the regulatory approvals for a new board structure mark an important milestone in Yes Bank's journey, the 'sell' call from analysts serves as a reminder for investors to look closely at the bank's core financial performance before making any decisions.