YES Bank recovers, surges 29% after 43% decline in one week

The financial and operating metrics remain intrinsically sound and stable, with liquidity position well in excess of regulatory requirements, the bank said in a statement.

Shares of YES Bank surged 29 per cent to Rs 41.30 on the National Stock Exchange (NSE) in the early morning deals on Thursday after the bank assured investors of a stable financial position, and said that the entire pledged shares stand extinguished.

"The financial and operating metrics remain intrinsically sound and stable, with liquidity position well in excess of regulatory requirements... With the invocation of shares, the entire pledge stands extinguished and all sale under the same duly completed," the bank said in a statement.

On October 1, 2019, the bank's share price tanked 30 in the intra-day trade on the NSE triggered by forced sale of 100 million equity shares, representing 3.92 per cent of the bank's equity share capital. The sale was due to an invocation of pledge on the equity shares of a large stakeholder. Milestone Trusteeship Services sold shares of YES Bank at Rs 35.29 apiece on behalf of Reliance Nippon Life Asset Management.

Previously, Yes Capital (YCPL) — one of the promoter entities of the bank -- on September 26, sold 1.8 per cent stake in the bank to repay the entire outstanding non-convertible debentures of YCPL. The sale amounted to Rs 241 crore worth of shares, the proceeds of which were made to Franklin Templeton AMC, for NCDs maturing in October 2020. 

Morevoer, Morgan Credits, on September 19, sold Rs 337 crore worth of  shares to prepay a certain part of its outstanding dues to RNam. The move came after CARE Ratings downgraded Morgan Credit’s NCDs from “A-” to “BBB-”. The revised rating accounted for the moderation in equity cover due to the fall in the price of underlying shares of YES Bank.

In the past one week, the stock of the private lender has tanked 43 per cent from level of Rs 56 to Rs 32, as compared to a 2 per cent decline in the Nifty 50 index till Tuesday.

At 10:09 am, the stock was trading 27 per cent higher at Rs 40.70, as against a 0.49 per cent fall in the benchmark index. The counter witnessed huge trading volumes with a combined 249 million shares changing hands on the NSE and BSE.