Yes Bank shares are going strong in a debilitated market as the slew of measures unveiled by the government last week to nurse the beleaguered bank back to health seems to be attracting buying interest towards the battered counter. At 12:00 pm, the shares had sky-rocketed by Rs 11 or 47 per cent to Rs 37, on the BSE. The shares opened at Rs 23 and have touched an intra-day high of Rs 40 and a low of Rs 23 thus far.
The bank has received investment commitments of Rs 10,000 crore from the SBI and seven other private sector banks. This fund infusion signals a show of confidence on the part of some of India's largest financial institutions and will allow the troubled bank to shore up its capital.
And in a welcome relief for the customers, the withdrawal limit will be lifted on Wednesday evening after the government notified the restructuring scheme proposed by Reserve Bank of India. The central bank had placed Yes Bank under a moratorium earlier this month.
On the results front, Yes Bank reported a staggering Rs 18,654-crore loss for the December quarter due to higher recognition of dud assets on the books, and an erosion of capital buffers to the brink. The gross non-performing assets shot up to Rs 40,709 crore or 18.87 per cent of assets as of December 31, 2019, up from the Rs 17,134 crore or 7.39 per cent in the preceding September quarter.
Meanwhile, Yes Bank will be removed from Nifty 50 from March 19 instead of March 27, according to NSE. The replacement has been announced on account of non-availability of future and options contracts in Yes Bank shares. The exchange had announced last week that Yes Bank would be replaced on Nifty banking index with Bandhan Bank from March 27.
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