Shares of Yes Bank Ltd plunged to their lowest in more than two years on Thursday after credit rating agencies ICRA and CARE Ratings downgraded ratings on the lender's debt instruments.
India's fifth largest private-sector lender by assets has had a tumultuous couple of months, with its stock nearly halving in value this year and a number of departures from its board, since the country's central bank cut short its chief executive officer Rana Kapoor's term in September.
The bank's shares fell 6.1 percent to Rs 152.15 to their lowest since March 18, 2016, in early trade with more than 33 million shares changing hands by 0401 GMT, compared with their 30-day average of 49 million shares.
ICRA downgraded domestic long-term ratings of the bank's senior debt instruments to 'ICRA AA' from 'ICRA AA+' and its subordinate debt instruments to 'ICRA AA-' from 'ICRA AA', the bank said late on Wednesday.
Meanwhile, CARE Ratings cut domestic ratings of Yes Bank's senior debt instruments to 'CARE AA+' from 'CARE AAA' and subordinate debt instruments to 'CARE AA' from 'CARE AA+'.
Earlier this week, rating agency Moody's also downgraded the bank's foreign currency issuer rating and changed its outlook on the bank to 'negative' from 'stable', sending its shares lower.
ICRA said Yes Bank's ratings remain on watch with negative implications, while CARE said ratings remain on credit watch with developing implications.
As of last close, Yes Bank shares had fallen 48.6 percent this year.