Yes Bank shares jump 4% as Citi, Morgan Stanley see lender as key beneficiary of new UPI charges. Earnings boost ahead?
Yes Bank shares rose sharply on Wednesday after Citi and Morgan Stanley identified the lender as a key beneficiary of new MDR charges on select UPI transactions above Rs 2,000. Citi expects the lender and other banks to see an earnings boost, while Morgan Stanley sees a smaller profit benefit than estimated earlier.
Paytm's shares surged by over 7% on Wednesday following brokerages raising their target prices and earnings estimates amid the introduction of a new Merchant Discount Rate (MDR) on select UPI transactions. The government announced the MDR, which will apply from October 15 onwards, imposing a 0.4% charge on transactions exceeding Rs 2,000, with a maximum fee of Rs 300 for transactions of Rs 75,000 or higher.
Despite this change, Paytm and other companies emphasized that customers will not bear any charges for UPI payments. Both Jefferies and JM Financial raised their target prices for Paytm shares to Rs 2,150 and Rs 2,150, respectively, implying a substantial upside potential.
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- Paytm shares jump 7% as Jefferies, other brokerages raise target prices and earnings estimates after new UPI charges economictimes.indiatimes.com
