Share price of troubled private sector lender Yes Bank gained 5 per cent on as markets opened on Thursday morning after the bank on Wednesday said that its management is ‘deeply engaged’ in fundraising and would post the quarterly results for the December quarter on or before March 14. Yes Bank, in a filing to the market regulator said that it has received non-binding expressions of interests from prominent investors including, J.C. Flowers & Co. LLC; Tilden Park Capital Management LP; OHA (UK) LLP (part of Oak Hill Advisors) and Silver Point Capital. Yes Bank share price was trading at a price of Rs 36.80.
Yes Bank said that its financial advisors are currently discussing with prospective investors the commercial terms, including pricing, of their investments. The investments will be subject to certain conditions and receipt of requisite approvals, including regulatory approvals with respect to the size of the stake to be acquired. Yes Bank will now report its earnings for the third quarter of this fiscal on or before March 14, which exceeds the 45-day period from the end of the relevant quarter as mandated by the SEBI regulations.
Meanwhile, India Ratings has downgraded Yes Bank to ‘A-’ from ‘A’ citing continued delay in fundraising. “The downgrade reflects the continued delay and inconclusive quantum of the anticipated equity infusion in Yes Bank. Ind-Ra believes this could adversely impact the bank’s franchise and potentially create challenges on the asset and liability side,” the rating agency said. In January this year, Moody’s Investors Service placed Yes Bank Ltd’s long-term foreign-currency issuer rating of ‘B2’ under review, with the direction uncertain on the bank’s inability to raise new capital.
Yes Bank has been trying hard to revive its financial health amidst falling Net Interest Income, Operating Profits and Profit after tax. Yes Bank in its second-quarter earnings reported an increase in Gross Non-performing Assets to 7.39 per cent from 5.01 per cent in the first quarter.
Domestic equity market benchmarks Sensex and Nifty were trading flat to negative in opening trade on Thursday even as reports claim that the risk of coronavirus spreading further is fading away. The S&P BSE Sensex was trading 30 points or 0.07 per cent lower at 41536.24, while the broader Nifty 50 index was ruling flat at 12,206.30 points.