YES Bank share price rose in early trade today after the private lender said it has raised Rs 1,930 crore through the qualified institutional placement (QIP) route. YES Bank share price rose up to 3.85% to Rs 79.50 compared to previous close of Rs 76.55 on BSE.YES Bank share price has been gaining for the last two days and has risen 6.25% in the period. YES Bank share price is trading below its 50-day and 200-day moving averages of 91.13 and 171.53 level.
The QIP opened on August 8, 2019 and closed on August 14, 2019. The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers (QIBs) at Rs 83.55 per equity share.
Of late, the bank has been in news for the challenges it faces on the financial front.
The bank's core Tier I capital ratio declined to 8 per cent in June 2019, precariously close to the minimum regulatory requirement of 7.37 per cent for the year ended March 2019 and 8 per cent for that ending in March 2020.
YES Bank reported a slump of over 92.4 per cent in its consolidated net profit to Rs 95.56 crore in the first quarter ended June this fiscal. The bank had reported a net profit of Rs 1,265.67 crore in the April-June quarter of the previous fiscal ended March 2018.
Sequentially, the private sector lender had posted first ever loss of Rs 1,508.44 crore in the quarter ended March, 2019 due to mounting bad loans.
The bank has been plagued by asset-quality woes. In the quarter ended June, YES Bank had to set aside Rs 1,109 crore as market provision on bonds issued by Dewan Housing Finance Corp (DHFL) and the Anil Ambani-led Reliance Group, which were both outside the bank's Rs 10,000 crore watch list, raising concerns about the bank's asset quality guidance.
Edited by Aseem Thapliyal