Yes Bank gains on fund raising plan

Yes Bank rose 2.11% to Rs 46.05 after the bank said its board will meet on 10 January 2020 to consider raising funds.

In an exchange filing made after market hours yesterday, the private lender said that its board will consider raising funds by issuing equity shares/depository receipts/convertible bonds/debentures/warrants/any other equity linked securities, through permissible modes, subject to necessary shareholders/regulatory approvals, as applicable.

Last month, a foreign brokerage cut its target price on the Yes Bank stock to Rs 46 from Rs 50 earlier. The brokerage also slashed the FY20 and FY21 profit estimate for the lender by 4-5%.

On 31 December 2019, CARE Ratings downgraded the rating on Yes Bank's infrastructure bonds to A/Negative {from A+ (Credit Watch with Developing implications) and Negative outlook assigned}. The outlook for the ratings is Negative considering the uncertainty related to equity raising, which is critical for the bank to maintain adequate capital buffers over the minimum regulatory requirement as well as fund future growth of the bank.

Offering a rationale for the rating downgrade, the ratings agency said that the revision of ratings assigned to the debt instruments of Yes Bank factors in more than expected delay in raising core equity capital. The outlook also considers slippages that are likely to continue in H2 FY20 and muted recoveries from non-performing assets, it added.

Yes Bank reported a net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. Total income fell 4.3% to Rs 8,332.21 crore in Q2 September 2019 over Q2 September 2018.

Yes Bank has pan-India presence covering 53 metro, 29 states and 7 Union Territories. The bank with 1120 branches, 1456 ATMs across the nation has an employee head count of 21,136 as of 31 March 2019.

Powered by Capital Market - Live News