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YES Bank: World's worst-performing bank stock posts globe's biggest surge

Its shares have rallied about 50 per cent -- the biggest gain among global peers valued at more than $1 billion -- after embattled founder Rana Kapoor was forced to sell his holdings in October

Suvashree Ghosh | Bloomberg 

YES Bank

India's Ltd., the world’s worst-performing lender in 2019, has posted the globe’s biggest gain over the past month.

Its shares have rallied about 50 per cent -- the biggest gain among global peers valued at more than $1 billion -- after embattled founder was forced to sell his holdings in October and a new management team promised fresh capital and lower bad loans. The surge helped pare the annual loss in the Mumbai-based lender’s shares to 63 per cent.

rose about 3 per cent as of 9:48 a.m. in Mumbai on Monday, while the main equity index was little changed.

The recovery will be a relief for new Chief Executive Officer Ravneet Gill, who’s been courting investors to revive the bank. India’s billionaire investor this month bought shares of Yes Bank, after the lender announced a binding offer from an unidentified global investor to inject $1.2 billion.

Gill is rushing to raise funds. Latest results released this month show swung to a loss in the September quarter and its bad-loan ratio rose.

“Capital is of utmost importance to the bank and we want the money to be in the bank by December,” Gill told reporters after the results. “Once we get the capital it will run us for 24 months.”

First Published: Mon, November 11 2019. 11:08 IST
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