Yes Bank share price zooms 58% in weak market after HDFC, ICICI, major banks come together to rescue

Yes Bank share price jumped 58 per cent to Rs 40.40 apiece on the NSE on Monday in an otherwise weak market after private sector banks such as HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank announced their investment plans to revive cash-starved Yes Bank. Yes Bank will resume all its banking services for customers from March 18, 6:00 PM, the troubled lender said in a tweet on Monday. Apart from this, the Union Cabinet approved the Yes Bank Reconstruction Scheme 2020, which will see India’s largest public-sector lender State Bank of India (SBI) pick-up 49 per cent stake in the cash-starved lender. While ICICI Bank and HDFC Bank will invest Rs 1,000 crore each picking equity in excess of 5 per cent; Axis Bank will invest Rs 600 crore and Kotak Mahindra Bank will pick up 50 crore shares for Rs 500 crore. India’s largest public-sector lender SBI has got approval from its board to purchase 725 shares at Rs 10 per share, it informed the stock exchanges on Thursday.

However the cash strapped lender posted a loss of Rs 18,564 crore, as compared to a net profit of Rs 1,000 crore reported by the bank in the same quarter last year. It also announced the issuance and allotment of equity shares, totaling to 395 crore equity shares worth Rs 3,950 crore to private institutional investors and 605 crore shares to State Bank of India for Rs 6,050 crore.

Yes Bank share price finished 45 per cent higher at Rs 37.05 apiece on National Stock Exchange (NSE). It hit an intraday low Rs 26.70 apiece. The stock has risen around 628 per cent from its 52-week low of Rs 5.55 apiece. The 30-day moratorium placed on the troubled private-sector lender may be lifted on Wednesday, March 18. According to the gazette notification published by the Ministry of Finance last week, the moratorium shall cease to have an effect on the third working day at 18:00 hours from the date of commencement of the Yes Bank reconstruction scheme. 

In a separate filing to the stock exchanges, Yes Bank also informed the issuance and allotment of equity shares, totaling to 395 crore equity shares worth Rs 3,950 crore to private institutional investors and 605 crore shares to SBI for Rs 6,050 crore.