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MUMBAI: Shares of Yes Bank Ltd have surged over 1,000% in seven sessions, rising from their lifetime low, after State Bank of India along with eight lenders agreed to a bailout package for the private lender.

The scrip closed at 59.10 on the National Stock Exchange on Tuesday, up 59.30% from its previous close.The stock had hit a lifetime low of 5.50 a share on 6 March and since then it has surged 1,069%.

On Tuesday, the lender's newly appointed management said Yes Bank will resume normal operations from 6 PM on Wednesday and it has no liquidity problem as things stand. "We have reasons to believe why customers will rush to withdraw their deposits. In any case we have sufficient funding lines to meet any requirement," said Prashant Kumar, administrator, Yes Bank.

Rajnish Kumar, chairman of State Bank of India -- the largest investor in the private sector lender -- said at a press conference, SBI remains committed to the investment and will not sell any part of its stake before a three-year partial lock in period ends . The three-year lock in was part of the rescue efforts to ensure that the lender remains well capitalised.

On Monday, the Reserve Bank of India had also assured Yes Bank's depositors that their money remains in safe hands and there is no reason to withdraw cash in panic.

After the restructuring exercise and RBI's assurance, rating firm Moody's Investors Service upgraded its rating for the lender with a positive outlook on Monday.

"We believe that the current moratorium on deposit withdrawal and capital infusion are just a first step toward the revival of Yes Bank and thus avoid systemic risk for the entire financial sector and economy in current testing times," said Emkay Research in a note to its investors.

On 13 March, the government had approved a rescue plan for Yes Bank backed by State Bank of India. Under the plan, domestic investors including SBI, HDFC Ltd, ICICI bank Ltd, Kotak Mahindra Bank Ltd, Bandhan Bank Ltd, Federal bank Ltd and IDFC First bank have committed to invest 11,200 crore into the bank.

Yes Bank had on Saturday reported a record loss of 18,564 crore in the quarter ended 31 December, 2019 owing to a sharp jump in bad loans and higher provisioning. Provisions for the quarter stood at 24765 crore. GNPA as a percentage of total loans soared to 18.87% from 7.39% a quarter ago. Net NPA as a percentage of total loans stood at 5.97% compared to 4.35% last quarter.

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