Shares of private sector lender Yes Bank plunged to a 10-year low on Monday despite the firm receiving RBI nod to raise capital.
Shares of private sector lender Yes Bank plunged to a 10-year low on Monday despite the firm receiving RBI nod to raise capital. Yes Bank share price plunged by more than 14% to hit the day’s low at Rs 41.50 on BSE. Yes Bank shares have lost more than 90% as compared to all-time high levels of Rs 404 hit in August 2018. “The Bank is
pleased to inform you that it has 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,” Yes Bank said in a statement to the exchanges.
Check live stock price: Yes Bank
The plunge in the stock comes even as Yes Bank is reeling under extreme pressure due to exposure to stressed assets. Last week, Yes Capital, led by promoter Rana Kapoor sold 1.8% shareholding in the Bank. The firm noted that the proceeds will be utilized to prepay balance outstanding Non-Convertible Debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management. The stressed assets as a percentage of FY19 book value stand at 54% in Yes Bank.
On Thursday, Morgan Credits (MCPL), the promoter firm of Yes Bank, sold Rs 337 crore worth of shares of the lender in a bulk deal. The shares were sold to prepay a certain part of its outstanding dues to Reliance Nippon Life AMC (RNam). The sale of shares intensified the selling pressure on Yes Bank. Rana Kapoor said in a statement: “With the sole intention of reducing debt of the promoter holding company MCPL, owned by my three daughters, it was decided to bring down our family ownership in YES Bank to 7.4%.”