Yes Bank indicated to the stock exchanges on Thursday that it has acquired shares of Eveready Industries amounting to 9.47% of the post-issue paid-up share capital after having invoked its pledged shares.
Yes Bank said it invoked the shares of Eveready Industries India following the default/breach of terms of credit facilities sanctioned by the bank to Mcleod Russel India, which is a group company of BM Khaitan Group.
Yes Bank shares fell as much as 4.3% to ₹98.75 on BSE today, extending their bear run after credit agency Moody's put the company under review for a downgrade. This is the first time in five years that Yes Bank share prices are down to double digits. Analysts have been downgrading Yes Bank’s stock on concerns over further deterioration in asset quality.
YES Bank, Asia’s worst-performing bank stock this quarter, plans to raise $1.2 billion over 18 months to bolster its capital buffer through a mix of public and private share sales, Chief Executive Officer (CEO) Ravneet Gill said.
Gill took over in March pledging to improve transparency after his predecessor, founder Rana Kapoor, was forced out by the Indian central bank for inadequate disclosure of stressed loans.
Shares of YES Bank hit a 40-month low of Rs 126, down 6 per cent on the BSE in the early morning trade on Thursday after reports said global brokerage firm UBS has cut the target price of private sector lender to Rs 90 from Rs 170.
The stock was trading at its lowest level since January 20, 2016, when it touched Rs 126.44 in the intra-day trade.
Rating agency Moody’s on Tuesday placed Yes Bank under review for downgrade, owing to the private-sector lender’s exposure to weak companies in the financial sector. The ongoing liquidity pressure on the country’s finance companies is likely to impact credit profile, the rating agency also said in a note. The private sector lender has ‘sizeable exposure’ to weaker non banking financial companies (NBFCs), it added.
Shares of YES Bank were trading lower for the third straight session in the afternoon trade on Monday. The stock was down 5 per cent at Rs 133 per share, on concerns of eroding balance sheet strength, rising non-performing assets (NPAs), capital raising concerns and weak visibility of profits.
YES Bank, which has exposures to Anil Ambani's Reliance group and Essel group companies, has started making provisions for loans given to both entities. The provisioning began after rating agencies downgraded debt instruments of both groups.
YES Bank has an exposure of Rs 13,000 crore to Reliance group entities and another Rs 3,300 crore to Essel group companies, according to analysts.
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