Yes Bank gained 9.02% to Rs 45.95 on reports that the bank is in talks with three top technology companies, including Microsoft Corp., to induct one of them as a strategic shareholder.
According to reports, Yes Bank could sell as much as 15% through a fresh equity issuance. The plan is part of the bank's strategy to get fresh capital infusion and augment its digital ambitions.
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.
Shares of Yes Bank declined sharply on 1 October 2019, 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. 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.
Meanwhile, Yes Bank has lodged a complaint with Mumbai Police and Cyber Cell against the dissemination of fake news and spread of rumors about the bank's financial health on social media platforms. The bank has requested the authorities to form a multi-disciplinary team of experts for detecting the origin of the fake news and assess the short-sell positions, held either directly or indirectly by such accused persons.
Meanwhile, the S&P BSE Sensex was up 169.34 points or 0.45% at 37,842.65.
Shares of Yes Bank have surged 43.44% in three trading sessions to its current price of Rs 45.9 from 1 October 2019.
The stock is down by 29% in a month compared to a 2.58% rise in benchmark Sensex.
On a standalone basis, the bank reported a 91% decline in net profit to Rs 113.76 crore in Q1 June 2019 as compared to Q1 June 2018. Total income rose 9.9% to Rs 9088.80 crore in Q1 June 2019 as against Q1 June 2018.
Yes Bank is engaged in providing a range of banking and financial services.
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