Shares of Yes bank plunged 30 percent intraday to touch an all-time low of Rs 29.05 and the overall market capitalisation of the firm fell below Rs 8,000 crore on BSE on October 1 amid concerns over its exposure to some troubled NBFCs, including Indiabulls Housing Finance
The shares of the private lender have been falling even as it has got the RBI approval to raise more capital.
However, the concerns over the bank’s financial health seem to have refused to subside.
In a recent report, IDFC Securities slashed the bank’s target price to Rs 35, citing that it sees piling up bad loans, higher haircuts due to slower resolutions and uncertainty around equity raising given the sharp correction in stock price.
The bank has tried to assuage the concerns of investors and said the estimates in the IDFC report are exaggerated.
Talking to CNBC TV18, the bank’s MD & CEO, Ravneet Gill, said exposure of YES BANK to NBFCs are well known, and the bank will raise as much capital as possible.
We are in a much better position than we were 6 months back,” Gill said.
Meanwhile, media reports suggested that the company’s promoters have sold another 2.16 percent stake in the bank.
The Economic Times reported that YES Capital (India), Morgan Credits Private and Rana Kapoor together sold 552 lakh shares, or 2.16 percent, stake in the open market during September 26-27.
Recently, the promoter and promoter group entities sold a combined 2.75 percent stake in the lender through the open market, taking their combined stake in the firm to 6.89 percent from 9.64 percent, the report added.
Shares of Yes bank traded at Rs 29.65, down 28.47 percent on BSE around 1420 hours.
Disclaimer: This article for educational purposes. please take your financial advisor’s advice before investing.