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YES Bank share rises 3%, among top gainers on Sensex

YES Bank share saw the maximum number of trades (29,796) on BSE as the scrip rose up to 2.96% at Rs 66.15 on BSE

twitter-logo BusinessToday.In        Last Updated: November 22, 2019  | 14:03 IST
YES Bank share attempts recovery after stake sale by Rana Kapoor, under reporting of bad loans cap gains; rises 3%
YES Bank stock had closed at Rs 64.25, falling 2.43 per cent on Thursday

YES Bank share saw hectic trading activity in morning session today with a positive bias. YES Bank stock saw the maximum number of trades (29,796) on BSE as the scrip rose up to 2.96% at Rs 66.15 on BSE. The lender was among the top Sensex gainers today. At 11:42 am, 57.80 lakh shares of the lender were traded amounting to turnover of Rs 3,784 crore on BSE. YES Bank stock had closed at Rs 64.25, falling 2.43 per cent on Thursday. The mid cap stock has lost 66.35% during last one year and fallen 63.8% since the beginning of this year.

However, the stock has gained 27% during last one month.

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

On October 22, YES Bank share price rose nearly 10% intraday to Rs 56.5 amid media reports that the bank was set to take over an estimated Rs 6,000-crore residential project from the developer Sumer Radius Realty, over non-payment of dues worth more than Rs 479 crore.

The shares of cash-crunched lender fell on November 4 after it posted quarterly loss of Rs 629 crore in June-September 2019 quarter on November 1, compared to a net profit of Rs 964.70 crore in Q2 of September 2018, due to a rise in bad loans. This was the second-biggest loss reported by the lender after Rs 1,506.60 crore loss posted in March quarter this year. YES Bank share price opened almost 10% lower at Rs 59.95 on the BSE that day.

YES Bank shares, however, recovered from early losses to gain over 7% intraday to Rs 71.35 on the BSE after the lender said that it was holding talks with investors to infuse around $3 billion in the private sector lender.

On November 5, YES Bank share price gained up to 8.77% to Rs 71.9  intra day after reports emerged reports emerged  that big bull Rakesh Jhunjhunwala bought nearly 1.3 crore shares of YES Bank for around Rs 87 crore through open market transactions. The midcap stock gained after two days of consecutive fall.

However, gains in YES Bank stock have been restricted by a series of negative developments in last one month.

On November 12, YES Bank shares traded lower after the Reserve Bank of India (RBI)  found under-reporting of bad loans to the tune of Rs 3,277 crore during the financial year 2018-19. Of this, Rs 1,259 crore were already classified as gross non-performing assets (NPAs) during September quarter and Rs 2,018 crore was the amount of incremental bad loans, YES Bank said.

Also read: Rana Kapoor era ends at YES Bank as promoters sell remaining stake; stock falls 2%

Following the disclosure, YES Bank's NPAs may shoot up by 41.5 per cent. As a result, the bank's net profit come down to Rs 1,084.03 crore for 2018-19 compared to Rs 1,720.28 crore announced earlier due to divergence in bad loans assessed by the RBI.

This was the third financial year when YES Bank had reported divergence in bad loans and provisioning. During the last fiscal, under-reporting was around Rs 10,000 crore for two years to FY17, which prompted the RBI to not extend Rana Kapoor's reappointment as CEO.

"The bank's management stands irrevocably committed to ensuring the highest standards of accounting and governance transparency. This was also evidenced through the proactive measure of taking Rs 2,100 crore of 'contingency provision' on exposures which were fully 'standard' as on 31 March 2019," the bank said.

On fund raising plan, the bank said that it intends to convene a meeting of its board of directors by the end of this month to finalise its capital raise. On November 12, Rana Kapoor, who co-founded YES Bank in 2003 and helped it to become India's fourth largest bank, almost sold off his entire holding in the lender. Kapoor, who once vowed never to sell his holding in the bank, holds just 900 shares in the bank.

YES Bank promoter entities, Kapoor, Yes Capital and Morgan Credits sold 2.04 crore shares or 0.80 per cent stake in the bank through open market on 13-14 November, YES Bank said.

Earlier this week, the stock took a hit amid reports that YES Bank's statutory auditor, BSR & Co., had sought a fresh audit into whistleblower complaints against the bank and ex-CEO Kapoor as it was not satisfied over the way the special audit was conducted by JLN US & Co. The lender, however, had denied the reports of fresh audit in a whistleblower complaint.

Also read: This midcap stock turned Rs 1 lakh into Rs 1 crore in 10 years; did you miss the rally?

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