Yes Bank surges 16% on heavy volumes, hits 6-week high

In the past three trading days, the stock price of Yes Bank has appreciated by 18 per cent after the rating agency ICRA affirmed private lender's various instrument with a stable outlook

Shares of Yes Bank rallied 16 per cent to Rs 12.87, hitting a six-week high on the BSE in intra-day trade on Tuesday on the back of heavy volumes. The stock of the private sector lender was quoting at its highest level since August 2, 2021.

At 01:13 pm, the stock was up 11 per cent at Rs 12.32 on the BSE. In comparison, the S&P BSE Sensex was up 0.18 per cent at 58,285 points. The trading volumes on the counter more-than-doubled, with a combined 585.57 million equity shares of Yes Bank having changed hands on the NSE and BSE so far.

In the past three trading days, the stock price of Yes Bank has appreciated by 18 per cent after the rating agency ICRA on September 9, affirmed private lender’s various instruments with a stable outlook. The stock had hit a 52-week low of Rs 10.51 on August 23, 2021.

Earlier, on August 31, India Ratings had affirmed Yes Bank’s long term issuer rating at “BBB” reflecting adequate capital levels to withstand expected stress on book and improving deposit profile. The outlook is stable.

“The ratings reaffirmation factors in the steady growth in the deposit franchise of Yes Bank since its reconstruction scheme and the consequent improvement in its liquidity position. While the growth in deposits has been appreciable, the share of corporate/wholesale deposits remains relatively high for the bank. Incrementally, Yes Bank’s ability to build a more granular deposit franchise will continue to be key for its growth and profitability,” ICRA said in rationale. CLICK HERE FOR FULL RELEASE

The Stable outlook on the ratings reflects ICRA’s expectations that Yes Bank will maintain the regulatory capital ratios, continue to improve its liability franchise and receive timely support from various stakeholders, if required, as demonstrated in the past, it added.

Meanwhile, CRISIL in rating rationale said the upgrade in the rating reflects the greater stability in the bank’s deposit base in the past few quarters post reconstruction of the bank in March 2020, as well as its adequate capitalisation. “The ratings continue to be underpinned by the expectation of continued extraordinary systemic support from key stakeholders and sizeable ownership by the State Bank of India (SBI). Given challenges in the macro-environment, ability of the bank to manage collections and asset quality will remain a key monitorable,” CRISIL said. CLICK HERE FOR FULL RELEASE

Meanwhile, in another development, Yes Bank on September 6, sent a notice to Dish TV India to remove the top management, including the managing director Jawahar Lal Goel. Yes Bank is the largest shareholder of Dish TV India and holds 471.91 million equity shares, representing 25.63 per cent of the paid-up equity share capital of the company.