YES Bank trades at its highest level since August 31; zooms 26% in 1 month

Shares of YES Bank were locked in the 5 per cent upper circuit band at Rs 15.38, its highest level since August 31, 2020, on the BSE on Tuesday. Till 01:15 pm, a nearly 400 million shares had changed hands on the BSE and NSE, and buy orders for 22 million shares were pending on the exchanges, data show.

In the past one month, YES Bank has outperformed the market by gaining 26 per cent, following the news of bank's inclusion in the MSCI India Index with effect from December 1. In comparison, the S&P BSE Sensex has rallied 12 per cent during the period.

Meanwhile, on November 9, CARE Ratings upgraded the bank's rating on debt instruments with stable outlook. CHECK RATINGS HERE

"The revision in the ratings assigned to the debt instruments of YES Bank factors in the improvement in the credit profile of the bank post the implementation of the reconstruction scheme announced by the Reserve Bank of India (RBI) and approved by Government of India (GOI) from March, 2020," CARE Ratings said in its rationale.

Besides, the ratings also factor in improvement in the bank's capitalisation levels post the follow on public offer (FPO) of equity shares by which the bank raised additional equity capital of Rs 15,000 crore in July, 2020, and bank's return to profitability in H1FY21. "The ratings also factors in improvement in bank's liquidity profile, majorly on account of stabilization in its deposits which also enabled the bank to repay the SLF (special liquidity facility) in September, 2020 prior to the due date," it said.