YES Bank share price slipped over 1 per cent in early trade on Monday after the Bombay Stock Exchange (BSE) said it would drop the private sector lender from the 30-share Sensex, effective December 24.
YES Bank's removal from the index points to a wider problem of falling market capitalisation as well as declining profitability. The stock has tumbled nearly 64 per cent year to date in wake of recent negative developments. The investors turned bearish on the stock after the Reserve Bank of India found under-reporting of bad loans to the tune of Rs 3,277 crore during the financial year 2018-19.
In the opening trade, YES Bank share price rose as much as 1.08 per cent to Rs 65.50 apiece on the BSE, but soon slipped into negative terrain. The stock fell 1.31 per cent to Rs 63.95 apiece against previous closing price of Rs 64.80.
On the National Stock Exchange (NSE), YES Bank shares were trading 0.62 per cent lower at Rs 64.40 per share against previous close level of Rs 64.80. The scrip has touched an intraday high and low of Rs 65.50 and Rs 64, respectively.
The Bombay Stock Exchange on Friday said the shares of Yes Bank, Tata Motors, Tata Motors DVR and Vedanta would be excluded from the Sensex from December 23.
In their places, Nestle India, Titan and UltraTech will enter the index, as per the information available with the BSE website.
Meanwhile, United Phosphorus Limited (UPL) and Dabur India will be included in the Sensex 50 on the same day.
Last week, Rana Kapoor, who co-founded Yes Bank in 2003, virtually sold his entire stake in the lender. YES Bank promoter entities, Kapoor, Yes Capital and Morgan Credits sold 2.04 crore shares or 0.80 per cent stake in the bank through open market on 13-14 November. Kapoor, who once vowed never to sell his holding in the bank, holds just 900 shares in the bank.
On Friday, Yes Bank sold more than 13 lakh shares of Anil Ambani-led Reliance Capital for over Rs 2 crore through an open market transaction. The lender sold 13,21,166 shares at an average price of Rs 16.39 apiece, amounting to Rs 2.16 crore, as per the bulk deal data available with the NSE.
Edited by Chitranjan Kumar
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today