YES Bank share was trading in positive territory on Tuesday amid reports that the troubled private sector lender is planning to sell its non-performing assets (NPAs) worth Rs 32,344 crore to asset reconstruction companies (ARCs) or other potential investors. The share has gained after falling for six consecutive sessions.
YES Bank share price opened 1.6% higher today at Rs 12.44, also its day's high against the earlier close of Rs 12.24 on BSE. The stock also hit an intraday low of Rs 12.26 early in the session.
Share price of the private sector lender has declined 4% in one week, 7% in one month and 73% since the beginning of the year. YES Bank stock is trading lower than 5, 20, 50, 100 and 200-day moving averages.
Market capitalisation of the lender stood at Rs 30,867 crore as of today's session. Shares of the private lender hit a 52-week high of Rs 87.95 and a 52-week low of Rs 5.55.
As per reports, YES Bank has already made provisions of Rs 24,476 crore, representing 76% of its gross NPAs. GNPAs on books post such provisions, currently stand at Rs 7,868 crore. The lender's board is looking to approve the NPA sale, in order to regain its lost position in the Indian banking industry.
The entire NPA portfolio is planned to be sold at 25 per cent or Rs 8,000 crore, IANS quoted in its report. YES Bank's offer to ARCs will be to recover at least 15 per cent amount i.e. Rs 5,000 crore upfront. The balance 10 per cent amount i.e. Rs 3,000 crore may be potential recovery by way of deferred payments.
Earlier, the private lender had sold bonds held in DHFL to raise Rs 500 crore and reduce exposure to the troubled NBFC.
On October 26, 2020, the lender recorded a net profit of Rs 129.37 crore for the September quarter compared to Rs 600.08 crore loss posted for the same period last year.
Sequentially, YES Bank's net interest income (NII) rose 3.4% to Rs 1,973 crore in Q2 from Rs 1,908 crore in the previous quarter. On a yearly basis, NII was down by 9.7% from Rs 2,186 crore.
Brokerage firms like Emkay Global Research, Elara Securities, Kotak Institutional Equities, Credit Suisse, Nirmal Bang have kept a sell rating on the stock that has exited from Nifty and Sensex. Meanwhile, Edelweiss kept the stock "under review".