Yes Bank Shares Rise 4% As New UPI Charges Put Focus On Fee Income
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Yes Bank shares rose over 4% after Citi and Morgan Stanley identified the lender as a potential beneficiary of new charges on select UPI transactions. Citi cited Yes Bank’s strong share of UPI beneficiary volume as a key factor.
Yes Bank shares rose more than 4% on Wednesday after brokerages including Citi and Morgan Stanley pointed to the private lender as one of the potential beneficiaries of the new charges on select UPI transactions.
The stock climbed to ₹24.10 on the National Stock Exchange (NSE) during the morning session, leading gains on the Nifty Bank and Nifty Private Bank indices, which were trading slightly higher. Yes Bank shares are up more than 6% over the past week and around 11% so far in 2026.
At 11:08 AM, Yes Bank share price on the NSE stood at ₹23.56, up 2.12% from the previous day’s closing price.
New UPI Charges From 15 October
The National Payments Corporation of India (NPCI) announced on Tuesday that a Merchant Discount Rate (MDR) will apply to certain Person-to-Merchant (P2M) UPI transactions above ₹2,000 from 15 October.
Under the new framework, merchants will pay a fee of 0.4% on eligible transactions. The charge will be capped at ₹300 for transactions of ₹75,000 or more.
The new fee will not be charged to consumers. Person-to-Person (P2P) UPI transfers will also remain free.
Small merchants covered under the P2PM framework will continue to be exempt. This includes vendors receiving up to ₹1 lakh a month through UPI QR codes.
Why Yes Bank Could Benefit
Citi has identified Yes Bank as a standout beneficiary of the new UPI charges, citing the lender's more than 40% share of UPI beneficiary volume, according to an ET Now report.
The brokerage expects the new charges to increase the potential earnings benefit for Yes Bank as UPI transactions start generating fee income.
Citi also sees a possible profit before tax benefit for other banks. Bank of Baroda, Punjab National Bank and IndusInd Bank could see around a 2% increase, while Axis Bank, State Bank of India and Federal Bank could see a 1-2% rise in earnings, the report said.
Morgan Stanley also considers Yes Bank a relative beneficiary of the new framework, according to an ET report. However, it expects the impact on profit before tax to be considerably lower than its earlier estimate of 10%.
The brokerage views the change as a new monetisation opportunity for banks with significant UPI transaction volumes, although the actual earnings impact will depend on how the charges translate into fee income.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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