Private lenders' 'act of kindness' to YES Bank irks investors

Peers investing indicates other investors' reluctance; banks must conserve capital first before bailing out the private lender

It was yet another forgetful day for the banking and financial stocks, and more so for names such as State Bank of India (SBI), HDFC, ICICI Bank, Axis Bank, Bandhan Bank, Federal Bank, and IDFC First Bank. Over the weekend these lenders collectively pooled in Rs 3,950 crore to bailout the beleaguered YES Bank along with SBI.

Given that the investment was made at Rs 10 a share, the same as SBI’s pricing, Monday's 45 per cent appreciation in YES Bank stock to Rs 37.10 could prompt one to think that these lenders have indeed made a good investment. However,