YES Bank share price surged almost 5% in Wednesday's session after the lender said it has repaid Rs 35,000 crore to the Reserve Bank of India (RBI) out of the total special liquidity facility (SLF) of Rs 50,000 crore, drawn for interim support.
YES Bank's Chairman Sunil Mehta said in the bank's 2019-20 annual report,"In addition to the SLF of Rs 50,000 crore extended by RBI, the bank has since then received strong customer liquidity inflows. I am pleased to report that the bank has, as of date, repaid Rs 35,000 crore of SLF. The balance will be repaid within the timelines set by RBI."
Following the update, the share price of YES Bank opened at Rs 15.34 and later closed 4.99% to the intraday high of Rs 15.78 on BSE against the earlier close of Rs 15.03.
Share price of YES Bank has risen 10.2% in the last 2 days. Stock price of YES Bank has fallen 20% in one month and 66% since the beginning of the year. YES Bank shares trade higher than 5 and 20-day but lower than 50, 100 and 200-day moving averages. Market capitalisation of the firm stood at Rs 39,436 crore as of today's session.
"YES Bank has made significant progress. The bank successfully raised equity funding of Rs 15,000 crore through a follow-on public offering (FPO) within four months of the restructuring scheme, amid challenging market conditions, towards the end of July," Mehta said, adding that since the bail-out, Yes Bank has improved its financial position.
"This demonstrates the strong confidence of institutional and retail investors in the bank's restructuring plan, the action is taken, future roadmap and professional leadership," he later added.
Mehta said in the report that following this capital increase, the lender's Common Equity Tier (CET) 1 ratio has doubled to 13.4% from 6.6% at the end of June.
RBI had provided a special liquidity window to the cash strapped private lender, as it came out of moratorium imposed in March this year. Lender's board was superseded following a near financial collapse due to alleged financial irregularities and careless lending by previous management under founder Rana Kapoor.
Prashant Kumar, MD & CEO of YES Bank said, "The successful completion of our Rs 15,000-crore follow-on public offering (FPO), India's largest fundraiser in the financial services sector, against an extremely challenging socio-economic backdrop is a testament to the faith reposed by our investors. This is one of the first but a very crucial step in the bank's journey of transformation into a Digital Bank."