YES Bank zooms 15% on heavy volume, stock hits 2-year high in weak market

Shares of YES Bank vaulted 15 per cent to a two-year high of Rs 20.4 on the BSE in Friday's intra-day deals. The jump was supported by massive volumes on the counter as 760 million shares, together, changed hands on the NSE and BSE. At 10:44 AM, shares of the lender were up 12 per cent at Rs 19.9 per share as against 0.28 per cent fall in the benchmark S&P BSE Sensex.

According to media reports, YES Bank has moved the National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution process (CIRP) against Digital Ventures Pvt. Ltd, a wholly-owned unit of Zee Learn Ltd.

"The private lender has filed the petition under Section 7 of the Insolvency and Bankruptcy Code, which allows a financial creditor to file an application for initiating the process. The NCLT has issued a notice to Digital Ventures," business daily Mint reported. Business Standard couldn't independently verify the report.

Earlier in April, a similar insolvency application was filed by the bank before the NCLT to initiate the insolvency process against Zee Learn after a default worth Rs 468 crore. Shares of Zee Learn fell over 3 per cent to Rs 7 in today's intra-day trade.

Meanwhile, in September 2022, YES Bank board approved JC Flowers ARC as the winner of the Swiss Challenge auction process, and approved the sale of stressed assets worth around Rs 48,000 crore the ARC.

The deal, it said, was seet to be the largest sale of stressed assets deal in domestic markets pursuant to the successful closure expected in Q3FY23. Further, the board has also approved the acquisition of up to 19.99 per cent equity stake in JC Flowers ARC by the Bank, subject to regulatory approvals.

In the July-September quarter, YES Bank's net profit fell 32 per cent year-on-year (YoY) to Rs 152.82 crore from Rs 225.5 crore posted in the year-ago quarter. Its net interest income, however, climbed 32 per cent YoY to Rs 1,991 crore vs Rs 1,512 crore in Q2FY22. Net interest margins (NIMs) increased by 40 bps to 2.6 per cent during the period.