Yes Bank surged 27.03% to Rs 40.65 after the bank clarified that Monday's selloff in the stock was on account of invocation of pledge on the equity shares of a large stakeholder.
Yes Bank's share price slumped 22.80% to end at Rs 32 on Monday, 1 October 2019. This fall was primarily on account of the forced sale of 10 crore equity shares (3.92% equity) triggered by an invocation of pledge on the equity shares of a large stakeholder.On Monday, 1 October 2019, Reliance Nippon Life Asset Management (RNAM) vide the appointed trustee Milestone Trusteeship Services sold 10 crore shares of Yes Bank at Rs 35.29 each.
Yes Bank confirmed that its financial and operating metrics remains intrinsically sound and stable with liquidity position well in excess of regulatory requirement.
The bank had a liquidity coverage ratio in excess of 125% as on 30 September 2019, which is well above the minimum regulatory requirement of 100%. Gross advances aggregated to about Rs 2.32 lakh crores as on 30 September 2019 (compared to Rs 2.42 lakh crores as on 30 June 2019) with a higher share of retail advances as compared to 30 June 2019. The reduction in advances was effected to enhance capital efficiency. Further, deposits aggregated to about Rs 2.09 lakh crores as on 30 September 2019. CASA ratio improved to about 30.8% as compared to 30.2% as on 30 June 2019.
The announcement was made yesterday, 2 October 2019, when stock markets were closed for local holiday.
In a separate announcement, Yes Bank's promoter entities viz. Yes Capital (India) (YCPL) and Morgan Credits (MCPL) informed that they had to sell their promoter shareholdings in the Bank with the sole purpose of deleveraging MCPL and YCPL. The proceeds from the sale of Yes Bank shares held by MCPL and YCPL had allowed the promoters to fully repay the outstanding NCDs of YCPL, and a very substantial proportion of over 61% of the outstanding NCDs of MCPL till 30 September 2019.
As per the bank's exchange filing, YES Capital (India), Morgan Credits and Rana Kapoor have together sold 5.52 crore shares, or 2.16% stake in Yes Bank via open markets on 26 and 27 September 2019.
On 20 September 2019, Yes Bank announced that MCPL sold 2.3% shareholding in the bank.
Yes Bank on 30 September 2019 said it received acknowledgment from the Reserve Bank of India to go ahead with the proposed increase in its authorized share capital. The bank shall now seek necessary shareholders' consent and proceed expeditiously with its capital raise.
The bank announced on 25 September 2019, that it has received strong interest from multiple foreign as well as domestic private equity & strategic investors for the proposed capital raise and it remains firmly on course to raising growth capital subject to the necessary approvals.
Yes Bank raised Rs 1,930 crore via qualified institutions placement (QIP), which was open between 8 and 14 August 2019. The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers at Rs 83.55 each.
Meanwhile, the S&P BSE Sensex was down -204 points or 0.53% to 38101.41.
On the BSE, 16 lakh shares were traded in the counter so far compared with average daily volumes of 13 lakh shares in the past one quarter. The stock hit a high of Rs 41.4 and a low of Rs 35.2 so far during the day.
The stock hit a 52-week high of Rs 285.9 on 03 Apr 2019. The stock hit a 52-week low of Rs 29.05 on 01 Oct 2019.
Yes Bank's net profit fell 91% to Rs 113.76 crore on a 9.9% rise in the total income to Rs 9088.80 crore in Q1 June 2019 over Q1 June 2018.
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