YES Bank share was trading higher for the second straight session on Tuesday after the lender's board announced it plans to consider fund-raising through various means, during its meeting on January 22. The bank is also set to announce its December quarter earnings on the same day.
On January 18, the private lender said in its filing that, "Raising of funds by issue of equity shares, depository receipts, convertible bonds, debentures, warrants, any other equity-linked securities through permissible modes subject to necessary shareholders, regulatory approvals as applicable."
The stock of private lender opened higher against previous close of Rs 17.70 and gained 1.6% to hit the day's high of Rs 18 on BSE. The stock also hit an intraday low of Rs 17.60. Ranking among the most active banking scrips in terms of volumes on both BSE and NSE, YES Bank stock has risen 0.85% in the last 2 days of consecutive gains.
The rise also came after brokerage house Jefferies said in a report the Piramal group winning creditors' approval to take over DHFL's loans was a "marginal positive" outcome for banks that have exposure to DHFL including state-run Bank of India Canara Bank and Union Bank of India and private-sector lenders such as YES Bank.
"There may be a risk of litigation from co-bidders as some offered higher value. The deal may lead to 40% recovery" it added.
Meanwhile, banking and financial index on BSE was up almost 1%, in line with broader indices Sensex and Nifty that rose 1.5% today, trading near record highs.
YES Bank stock is trading higher than 50 and 100-day moving averages but lower than 5 20 200-day moving averages.
The stock fell 0.8% last week and over 5% in one month. Year-to-date the stock has gained 0.2%.
Earlier this month YES Bank among other listed companies was re-classified as large-cap stocks in the semi-annual Association of Mutual Funds in India (AMFI) review which will be effective for the February-to-July 2021 period.
Market capitalisation of the lender stood at Rs 44,973.56 crore as of today's session. The stock has touched a 52-week high of Rs 87.95 and a 52-week low of Rs 5.55. Share of the private lender with Rs 2 face value has fallen 54% in one year.
On the technical front, YES Bank stock has just managed to hold in two figures and is in a mildly bearish range since last year. The stock shows buying interest in the range of Rs 17-18 on a weekly basis as against the earlier Rs 11-15 range.
In a regulatory filing on January 4 YES Bank announced that it has registered 1.3% growth on a sequential basis in loans and advances to Rs 1.69 lakh crore during the December quarter. Lender's deposits grew 7.7% to Rs 1.46 lakh crore in the quarter compared to Rs 1.36 lakh crore in the September quarter.
The gross retail disbursements during the December quarter stood at Rs 7563 crore up 109% compared with Rs 3764 crore in the September quarter.
The certificate of deposits (CDs) grew 1.9% to Rs 7,395 crore from Rs 7,259 crore in the preceding quarter. The current account and savings account (CASA) deposits grew 12.6% to Rs 37973 crore compared to Rs 33713 crore in the September quarter.