Yes Bank shares bounce back, zoom over 58 per cent
Shares of Yes Bank on Monday jumped sharply by over 58 per cent after the union cabinet on Friday approved reconstruction scheme for the stressed lender. The scrip witnessed a strong comeback and zoomed 58.12 per cent to Rs 40.40 on the BSE. On the NSE, it climbed 58.12 per cent to Rs 40.40.
112.78 lakh shares were traded on the BSE and 9.55 crore shares changed hands on the NSE during the day.
Finance Minister Nirmala Sitharaman said the union cabinet has approved the reconstruction scheme for Yes Bank as suggested by the Reserve Bank.
On March 5, the Reserve Bank of India (RBI) imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3.
The RBI also superseded the board and placed it under an administrator, Prashant Kumar, former deputy managing director and CFO of State Bank of India (SBI).
Giving details about the scheme, Sitharaman said SBI will invest for 49 per cent equity in Yes Bank and other investors are also being invited.
SBI has invested Rs 6,050 crore in crisis-ridden Yes Bank.
ICICI Bank, Housing Development Finance Corp (HDFC), Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First have also joined the SBI-led consortium and invested in Yes Bank.
The cash-strapped lender had on Saturday reported Rs 18,564 crore loss in December quarter. Its gross non-performing assets also shot to 18.87 per cent in December 2019 quarter against 2.10 per cent in the year-ago.
"Lifting of deposit withdrawal moratorium on 18th March could open flood gates and will require a calibrated approach along with active support and signalling from the RBI, government and investor banks," said a report by Emkay Global Financial Services.
The reconstituted bank board too may need more turnaround experts and eminent bankers, it said.
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