Shares of YES Bank hit an over four-month high of Rs 18.90, up 9 per cent on the BSE in early morning trade on Wednesday after the bank announced that Brickwork Ratings has upgraded the rating of Tier I Subordinated Perpetual Bonds (Basel II) from BWRD to BWR BB+/ Stable. The stock of the lender was trading at its highest level since July 22, 2020.
With today’s gain, the stock of YES Bank has rallied 50 per cent in the past one month, as compared to a 9.5 per cent rise in the S&P BSE Sensex.
Yes Bank on Tuesday said the loan repayments performance by its retail and small business borrowers has been better than expected, and only Rs 300 crore of the Rs 60,000-crore book has applied for the COVID-19-related loan restructuring scheme.
The collection efficiencies at about 95-96 per cent right now are back to the pre-COVID-19 levels of 97 per cent, its Global Head for Retail Business Rajesh Pental told PTI.
Private sector lender YES Bank’s net profit rose sequentially to Rs 129 crore in the second quarter ended September 30 this year from Rs 45 crore in the first quarter ended June 30. The bank had posted a loss of Rs 600 crore in Q2 of the previous financial year.
Net interest income (NII) rose 3.4 per cent sequentially to Rs 1,973 crore in Q2 from Rs 1,908 crore in the previous quarter. On year-on-year (YoY) basis, NII was down by 9.7 per cent from the base of Rs 2,186 crore in the second quarter of the previous year.
Private sector lender YES Bank expects to bring down credit-to-deposit (C/D) ratio to below 100 per cent by March 2021, from the current levels of 122 per cent in order to bring a balance in the asset-liability equation. The C/D ratio was 122.9 per cent in September, down from 140.2 per cent in June. It was at 162.7 per cent in March.
Bank officials said while it was possible to bring down the ratio below 100 per cent much earlier, YES Bank, too, has to look at interest earning for which credit expansion is equally important.
Shares of YES Bank extended their decline itnto second straight day, down 17 per cent to Rs 21.20 in the intra-day trade, on the BSE on Monday on the back of heavy volumes after the bank on Friday fixed floor price for its proposed follow-on public offer (FPO) at Rs 12 per share and a cap of Rs 13 per unit. In the past two trading days, the stock has tanked 20 per cent from a level of Rs 26.65 on the BSE.
Shares of YES Bank recorded their sharpest intra-day gain -- 58 per cent -- to Rs 40.40 on the BSE on Monday in an otherwise weak market after the Union Cabinet approved the reconstruction of the crisis-hit private sector lender as per the scheme proposed by Reserve Bank of India (RBI).
At 10:34 am, YES Bank was trading at Rs 38.85, up 52 per cent against its previous day’s close of Rs 25.55 on the BSE. In comparison, the S&P BSE Sensex was down 4.8 per cent at 32,483 points. The counter has seen huge trading volumes with a combined 106 million shares changing hands on the NSE and BSE so far.
The union government on Saturday notified the YES Bank reconstruction scheme. In line with the scheme, the moratorium on the private lender will be lifted on March 18.
The government has also constituted a four-member board wherein Prashant Kumar, the current administrator of the bank, has been appointed as the managing director and the chief executive officer (MD&CEO) of the bank. Sunil Mehta, the former non-executive chairman of Punjab National Bank, has been appointed the non-executive chairman.
As part of the YES Bank restructuring plan, Life Insurance Corporation of India (LIC) would buy around 1.35 billion shares at a price of Rs 10 apiece, according to a report by business channel CNBC-TV18.
On Thursday, State Bank of India (SBI) had said it would infuse Rs 7,250 crore into ailing YES Bank to pick up to 49 per cent equity as part of the Reserve Bank of India-mandated bailout plan.
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