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Why YES Bank shares fell nearly 4% in intraday trade

Weighed down by profit booking, YES Bank share price declined as much as 3.90 per cent to touch an intraday low of Rs 70.15 apiece on the BSE after opening higher at Rs 74.60 against previous close of Rs 73

twitter-logo BusinessToday.In   New Delhi     Last Updated: November 14, 2019  | 18:31 IST
Why YES Bank shares fell nearly 4% in intraday trade
In the last one month, YES Bank share price rallied over 78 per cent

Shares of YES Bank fell nearly 4 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Wednesday as investors resorted to profit booking after strong rally in the last few sessions. The stock saw surge in buying last week after the private lender said that it had received offers worth $3 billion to raise funds.

In a separate development, Sunil Munjal, chairman of Hero Corporate Services Ltd, and Hemendra Kothari, veteran investment banker and founder of DSP Group, have held separate talks with YES Bank to buy 5-10 per cent stake each in the bank, Mint reported.

On November 4, ace investor Rakesh Jhunjhunwala purchased nearly 1.3 crore shares of YES Bank for around Rs 87 crore through open market transactions.

Also Read: Why State Bank of India shares fell 3% in intraday trade

Weighed down by profit booking, YES Bank share price declined as much as 3.90 per cent to touch an intraday low of Rs 70.15 apiece on the BSE after opening higher at Rs 74.60 against previous close of Rs 73.

Also Read: YES Bank share price clocks world's biggest gain in one month, rises 78%

On the National Stock Exchange (NSE), YES Bank shares were trading 3.15 per cent lower at Rs 70.70 per cent. The scrip touched an intraday low of Rs 70.20 against previous closing price of Rs 73.

In the last one month, YES Bank share price rallied over 78 per cent, the biggest gain among global peers valued at more than $1 billion.

Also Read: Why Rakesh Jhunjhunwala bought 1.3 crore shares of YES Bank

However, YES Bank share price has lost 68 per cent during the last one year, compared to the private sector bank that has overall risen 5.58 per cent, on management's efforts to raise funds. The stock has tumbled 61 per cent since the beginning of this year as a series of negative developments roiled the stock.

The private sector lender aims to conclude a $1.2 billion (about Rs 8,462 crore) equity raising exercise by December and is willing to give new investors a board seat, PTI quoted a top official as saying.

Also Read: Yes Bank to raise over Rs 8,400 crore by December, give board representation to new investors

Last week, global rating agency Moody's placed the lender's ratings under review for downgrade due to weak September quarter earnings.

In September quarter, YES Bank reported a net loss of Rs 600 crore, impacted by one-time deferred tax adjustment of Rs 709 crore due to change in corporate tax rate regime. This was the second biggest loss posted by YES Bank since its listing in May 2005. The bank had posted its biggest loss of Rs 1,506.60 crore in March quarter this year.

Edited by Chitranjan Kumar

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