YES Bank gained over 5 per cent to Rs 37.20 on the BSE on Thursday after the bank said it is in talks with potential investors, including J.C. Flowers and Silver Point Capital, for raising equity capital.
In a filing to the BSE, the lender said it had received non-binding expressions of interest (EoIs) from several investors including J.C. Flowers & Co, Tilden Park Capital Management, OHA (UK) LLP (part of Oak Hill Advisors), and Silver Point Capital.
Shares of YES Bank gained 5 per cent to Rs 40.70 on the BSE on Monday in intra-day trade after the bank's shareholders cleared fund raising proposal of up to Rs 10,000 crore by issuing equity shares or convertible securities which would help enhance the private sector lender’s capital adequacy. The stock of private sector lender was trading higher for the fourth straight day.
At an extraordinary general meeting on Friday, investors authorised the lender’s plans to raise capital through issuance of equity shares or other convertible securities (Special Resolution).
Banking stocks, especially public sector banks including Syndicate Bank, Indian Bank, and State Bnak of India (SBI), added up to 6.2 per cent on the National Stock Exchange (NSE) on Friday after the Reserve Bank of India (RBI) decided to buy and sell bonds worth Rs 10,000 crore via open market operations.
In a statement on Thursday, the RBI said it will simultaneously buy and sell government bonds worth Rs 10,000 crore each on December 23, through Open Market Operations (OMOs).
Banking counters such as IDBI Bank, State Bank of India (SBI), YES Bank, and ICICI Bank, were trading higher on Friday after reports suggested that the government is considering increasing the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 per cent of the outstanding, from 6 per cent now, with an aim to incorporate local bonds into global bond indices.
According to a Business Standard report, the central bank, however, wants the government to go slow and first check how the currency risk is covered from the issuer perspective, before increasing the limits further.
YES Bank Ltd's latest $2 billion rescue plan was perfect except for one minor detail: Most suitors for the beleaguered Indian lender aren't the kind the board can really take to meet the regulator for tea. Yet in a five-hour meeting Tuesday, the directors decided to do exactly that. Jane Austen would have been proud of their desperation to marry off YES.
Beleaguered Coffee Day Enterprises Ltd.'s sale of its technology park to Blackstone Group Inc. is stalled as one of its creditors hasn't approved the deal, people with the knowledge of the matter said.
Yes Bank Ltd. hasn't issued the so-called no objection certificate as it's seeking assurances on repayments of other loans taken by Coffee Day, said the people, asking not to be identified as the information isn't public. All other creditors have approved the transaction, the people said.
Shares of YES Bank dipped 5.5 per cent to Rs 58.70 on the BSE on Friday after Moody's downgraded the bank's long-term foreign currency issuer rating to 'B2' from 'Ba3', as potentially stressed assets and low loss-absorbing buffers may add pressure to its funding and liquidity. The global rating agency assigned negative outlook on the bank's rating.
The private sector lender's stock was trading at its lowest level since October 31, 2019.
YES Bank shares climbed 6 per cent to Rs 74 on the BSE on Friday ahead of the board meet today to consider fundraising plan.
The stock of the private sector lender rallied 17 per cent after the Bank, on Tuesday, said its board will meet on Friday, November 29, 2019, to discuss and consider fundraising by issue of equity/equity linked securities through permissible modes.
Private lender YES Bank is slated to report its September quarter earnings for FY20 (Q2FY20) on Friday, November 1 amid expectations of a loss up to Rs 1,907.3 crore due to exposure to bankrupt companies like DHFL, McLeod Russel, and Cox & Kings.
The lender reported a profit of Rs 113.8 crore in the June quarter of FY20 (Q1FY20), and that of Rs 964.7 crore in Q2FY19. The net interest income (NII) came in at Rs 2,280.9 in the June quarter of the current fiscal, which was Rs 2,417.6 in Q2FY19.
A year ago, before the liquidity crunch manifested for non-banking financial companies (NBFCs), Yes Bank Ltd’s market capitalization was 1.5 times that of Indiabulls Housing Finance Ltd. Today, that difference has narrowed quite a bit as the adjoining chart shows.
Both the lenders have seen a massive erosion in their market value, but Yes Bank’s pain has been deeper.
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