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.
Yes Bank's shares surged by more than 4% on Wednesday following remarks from Citi and Morgan Stanley, suggesting the private lender could be a major beneficiary of new charges on certain UPI transactions over Rs 2,000. The lenders noted that Yes Bank holds over 40% share in UPI beneficiary volume, which could amplify the impact of its earnings from UPI monetisation.
The National Payments Corporation of India (NPCI) announced plans to introduce a Merchant Discount Rate (MDR) of 0.4% on select P2M UPI transactions starting October 15, with a maximum fee of Rs 300 on transactions exceeding Rs 75,000. While consumers will not be charged for UPI payments, small merchants under the P2PM framework will remain exempt.
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