Yes Bank slips after MSCI exclusion

Yes Bank fell 1.55% to Rs 592 at 10:18 IST on BSE after Morgan Stanley Capital International excluded the stock from its standard and mid-cap indexes.

Meanwhile, the BSE Sensex was down 43.71 points, or 0.16%, to 26,772.85.

On BSE, so far 1.77 lakh shares were traded in the counter, compared with an average volume of 3.21 lakh shares in the past one quarter.

The stock hit a high of Rs 596.90 and a low of Rs 583.75 so far during the day. The stock hit a record high of Rs 634.25 on 12 September 2014. The stock hit a 52-week low of Rs 280.40 on 1 October 2013.

The stock had outperformed the market over the past one month till 15 September 2014, rising 11.30% compared with 2.73% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 14.01% as against Sensex's 6.30% rise.

The large-cap company has an equity capital of Rs 416.10 crore. Face value per share is Rs 10.

The Morgan Stanley Capital International (MSCI) will omit Yes Bank from its standard and mid-cap indexes, a part of the MSCI Global Standard Indexes. The change will be effective from Thursday, 18 September 2014.

MSCI is a leading provider of benchmark indices and risk management analytics products. Many global mutual funds are linked with MSCI indices. Hence, deletion of a stock from the MSCI index leads to outflow of passive funds that use the MSCI index to benchmark their portfolios.

Yes Bank's exclusion from the MSCI indexes was triggered by the Reserve Bank of India (RBI)'s announcement that Foreign Institutional Investors (FIIs) need approval to buy shares in Yes Bank as it has reached the limit allowed for overseas shareholding.

Following the RBI announcement, shares of Yes Bank fell 4.99% to Rs 601.30 on Monday, 15 September 2014.

The Reserve Bank of India (RBI) notified that the foreign shareholding through FIIs/Registered Foreign Portfolios Investors (RFPIs)/Non Resident Indian (NRI)/ Persons of Indian Origin (PIO)/ Foreign Direct Investment (FDI)/American Depository Receipt (ADR)/Global Depository Receipts (GDRs) in Yes Bank has reached the trigger limit. Therefore, further purchases of equity shares of the bank would be allowed only after obtaining prior approval of RBI.

Yes Bank's net profit rose 9.64% to Rs 439.48 crore on 9.34% increase in total income to Rs 3105.21 crore in Q1 June 2014 over Q1 June 2013.

Yes Bank is one of the leading private sector banks in India.

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