Press "Enter" to skip to content

Yes Bank Skyrockets Over 73% On Moody’s Ratings Upgrade, RBI Assurance – NDTV Profit

The shares zoomed 1,000 per cent in past 7 trading sessions from all-time low of Rs 5.5

Yes Bank shares skyrocketed in today’s session, continuing the momentum from the previous day, after rating agency Moody’s upgraded the private lender’s outlook and RBI Governor provided an assurance about the deposited in the troubled bank. The share price of Yes Bank rose over 73 per cent to Rs 64.15 this morning compared to the previous close of Rs 37.10.

At 1.00 pm, the shares were trading at Rs 58, stronger by Rs 21 or 58 per cent, on the BSE, amid a 1.3 per cent rise in the BSE Sensex. The shares have touched an intra-day high of Rs 64.15 and a low of Rs 40 thus far.

Moody’s Investors Service upgraded the bank’s long-term foreign currency issuer and foreign currency senior unsecured MTN programme ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively, among other upgrades.

On Monday, the RBI Governor Shaktikanta Das assured the Yes bank investors that their deposits are safe and promised that the central bank will step in, if needed, to provide necessary liquidity to Yes Bank.

The stock of the private sector lender has vaulted around 100 per cent in the past two days alone. In all, the shares have zoomed 1,000 per cent in the past 7 trading sessions from the all-time low level of Rs 5.5 touched on March 6 as investors are betting that recent actions by the government and RBI would orchestrate a turnaround in the beleaguered bank.

The RBI Governor also reiterated that the moratorium on Yes Bank will be lifted at 6 am on Wednesday, March 18. Earlier this month, the RBI placed Yes Bank under a moratorium till April 3 following deterioration in the bank’s financial position, and took control of its board. The central bank restricted withdrawals from Yes Bank accounts at Rs 50,000 with few exceptions.

The government had earlier approved the reconstruction of the crisis-hit bank as per the scheme proposed by Reserve Bank of India (RBI). As part of the RBI-backed rescue plan, India’s largest bank SBI will pick up to 49 per cent in the troubled private sector lender. ICICI Bank, Housing Development Finance Corporation (HDFC), Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank have also joined the SBI-led consortium in making financial commitments towards the revival of Yes Bank.

Investment by private banks has so far reached Rs 3,950 crore. Among the private players, ICICI Bank and Housing Development Finance Corporation committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank committed to invest Rs 600 crore and Rs 500 crore, respectively.

Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.