Yes Bank shares tumble 7% on fraudulent transactions at CG Power and Industrial Solutions

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Published: August 20, 2019 4:00:02 PM

Shares of Yes Bank plunged more than 7 per cent after the risk and audit committee of CG Power and Industrial Solutions in which the private lender owns more than 12.79 per cent stake said there were some unauthorized transactions.

Yes Bank, Yes Bank QIP, Shares of Yes Bank, BSE, QIP floor price, foreign currency, latest news on QIPShares of Yes Bank plunged more than 7 per cent after the risk and audit committee of CG Power and Industrial Solutions disclosed some unauthorized transactions.

Shares of Yes Bank plunged more than 7 per cent after the risk and audit committee of CG Power and Industrial Solutions in which the private lender owns more than 12.79 per cent stake said there were some unauthorized transactions by certain employees of the company.  CG Power also received a letter from a particular financing company regarding a certain interest payment failure which the Operations Committee of the company was unable to trace or ascertain from the financials of the company, according to the exchange filing. Today, on BSE, the shares of Yes Bank fell more than 7 per cent to 70.55 in the intra-day trading against the previous close of Rs 76.70 per share. While the shares of CG Power plunged to their 52-week low to Rs 14.75 per share as against the last close of Rs 18.40 per share. 

Recently Yes Bank had raised Rs 1,930.46 crores via qualified institutional placement (QIP) for business expansion. The QIP had opened on August 9 and continued till August 14, according to the exchange filing. The eligible qualified institutional buyers (QIBs) were allotted 23.1 crore shares of the face value of Rs 2 each at Rs Rs 83.55 per share, according to the exchange filing. The issue saw a strong response from foreign as well as from domestic QIBs, the private lender said in a filing. 

In the first quarter of the running fiscal Yes Bank saw a fall in its net profit by 90.97 per cent on account of lower other income and higher provisioning. The private bank reported a net profit  Rs 113.76 crore for the first quarter ended 30 June as against Rs 1,260.36 crore in the year-ago period. Other income, which includes core fee income, plunged 24.88 per cent to Rs 1,272.66 crore in the three months from Rs 1,694.14 crore a year ago.

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