Yes Bank shares surge nearly 23%, claims to remain “intrinsically sound”

Share This Post

Yes Bank shares jumped nearly 23% on Thursday, plunging the weakness in the broader market. According to market sources, Ravneet Gill, the managing director at Yes Bank relieved investor concerns in a conference call, saying that the bank has “enough liquidity.” According to Reuters, the private bank said that its financial and operational metrics remained “intrinsically sound.”

At the conference call, the bank also stated that the senior group president at the bank, Rajat Monga, has decided to exit the private lender. Monga, the to be CEO and successor of founder Rana Kapoor, uncovered his entire stake for Rs 8.22 crore during September 2018-20.

The stake that jumped on Thursday traded at Rs 40 at 10:15 am. Sensex and Nifty were down about 0.5% each. Earlier in September, the Yes Bank shares dipped 5.6%. Many senior officials, including Monga, have sold shares in the bank since 25th July. The shares of Yes Bank dropped 23% after the forced sale of 10 crore equity shares on Tuesday, which represented 3.92% of the bank’s equity share capital.

 

Surplus liquidity coverage ratio 

The bank management spoke on concerns relating to the declining asset quality, liquidity situation, and exposure to large groups with weak financials amidst the private lender’s stock losing value every day. The management ensured that they were 100% positive on aspects like recoveries from NPAs and improvement in deposits. 

Gross advances aggregated from Rs 2.42 trillion as on 30th June to Rs 2.32 trillion as on 30th September, with a higher share of retail advances. The decrease in advances was effected to enhance capital efficiency. The deposits aggregated to Rs 2.09 trillion as on 30th September, while the CASA (Current And Saving Account) ratio improved from 30.2% to 30.8% as on 30th June.

Yes Bank on Wednesday said that it had a liquidity coverage ratio in surplus of 125% as on 30th September, well above the minimum regulatory requirement of 100%. 

+ posts

A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Related Posts

Regulation and GST on Cryptocurrency in India – An optimistic approach?

“Satoshi Nakamoto” is a name that stormed the internet....

Amid Mass Layoffs, Is the fall of the Indian ed-tech industry inevitable?

The mass layoff by India’s top unicorn Byju’s was...

NFT Domains, what the heck are they? An introduction to Quik.com & ENS Domains

Before getting to the main question of what exactly...

Coworking, Explained.

TimesNext Recommended: BiggBang Coworking, the Best Coworking Space in...

GOI Forms Committees to Scrutinize Crypto Ads, Fake Reviews, and Ed-tech Firms

The government intends to tighten the noose to safeguard...

Global Bitcoin Use Will Reach 10% By 2030, Says Blockware

Bitcoin acceptance could be faster than that of previous disruptive...