Yes Bank share price gains 10% as IL&FS concerns ease; shares see biggest intra-day gain in 3 weeks

Yes Bank share price: Shares of India’s major private sector lender Yes Bank rallied on Thursday after the lender’s name did not feature among the top 5 creditors named by IL&FS. Yes Bank shares zoomed as much as 9.7% to hit the day’s high at Rs 205.75. “Investors are relieved as Yes Bank was not named by IL&FS among its top 5 creditors in its NCLT filing,” Asutosh Mishra, banking sector analyst at Reliance Securities told Reuters. Notably, in a notice containing the revival plan, IL&FS named State Bank of India, Bank of Baroda, Power Finance Corporation, Bank of India and IndusInd Bank as its top 5 creditors.

Il&Fs default in the recent times has had a contagion effect with spreads widening and short-term borrowing costs spiking, since the firm failed to meet debt obligations in August and September, while corporate governance concerns are adding to risk aversion, global rating firm S&P said in a recent report.

“There is some comfort on the front that Yes Bank’s exposure (to IL&FS) is mainly secured and that loss from the exposure could be contained,” Reuters reported an analyst, who requested anonymity, as saying.

Yes Bank shares recorded their steepest plunge in over 8 years on September 21st, tanking by 34% after R curtailed CEO RBI Rana Kapoor’s tenure to January 2019. Yes Bank shares are still trading 50% lower than their 52-week high of Rs 404. Last week, Yes Bank  reported a loss of nearly 4% in its net profit for the second quarter ended September 2018, missing analyst’s estimates. Yes Bank’s net profit for the quarter stood at Rs 964.7 crore, while Net interest income (NII), rose 28.2% on-year to Rs 2,417.6 crore.

To know more about us or our services, kindly visit www.buildcaps.com

Buildcaps Management Services

Best Investment adviser in India & Genuine Stock advisory company