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Yes Bank jumps 34%, adds Rs 3000 crore market cap as concerns over promoter pledge ease

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Yes Bank quoted at Rs 42.85 apiece on BSE at close.

Yes Bank shares posted their biggest ever single-day gain, rising nearly 34 percent on Thursday. The bank added nearly Rs 3000 crore in its market capitalisation. The lender's total market cap at the end of trade on BSE stands at Rs 10,851.66 crore, while the total traded quantity of shares was 428.18 lakh.
At close, the stock quoted at Rs 42.85 apiece on BSE. Yes Bank shares started the day's trade with a 10 percent jump after the private lender clarified in a BSE filing that the material drop in its share prices on October 01, 2019 was primarily on account of the forced sale of 10 crores equity shares (3.92 percent of the Bank's equity share capital) triggered by an invocation of pledge on the equity shares of a large stakeholder.
Further, the Bank would like to confirm that it's financial and operating metrics remain intrinsically sound and stable with liquidity position well in excess of regulatory requirements, the BSE filing said.
Yes Bank shares came under pressure for the fifth straight session on Tuesday amid concerns over its exposure to Indiabulls Housing Finance. In intra-day deals, the stock tanked as much as 30 percent to hit its all-time low of Rs 29 per share on BSE. The overall market capitalisation of the firm also fell below Rs 8,500 crore on BSE.
In an interview with CNBC-TV18 earlier this week, Gill also informed that the bank's exposure to Indiabulls Housing Finance has gone down about 30 percent over the last few months.
“Over the last two quarters, this (Indiabulls) exposure has come down 30 percent, it is well collateralised, the account has performed exceedingly well, we have never had a day’s delay in repayments. So we do not feel concerned about that exposure right now and it’s not as large as it has made out to be," Gill clarified in an interview with CNBC-TV18.
Furthermore, Yes Bank chief executive officer Ravneet Gill assured investors that the bank's financial health was "intrinsically sound and stable" and added that the entire promoter stake that was pledged with lenders has been sold.
Gains, however, may remain capped as Gill, in a conference call, informed investors that Group president Rajat Monga has quit. The development comes after reports of Monga and a few other executives selling the bank's shares in the open market over the past few sessions.
At 9.28 am, Yes Bank shares traded over 18 percent higher on BSE, quoting at Rs 37.85. The stock opened at the day's low of Rs 35.20 per share, up 10 percent from its Tuesday's close and touched the day's high of Rs 39.90.
The benchmark BSE Sensex dropped 172 points to trade at 38,133. The Nifty was at 11304, down 56 points.
Also, catch all the latest action and updates in CNBCTV18.com's market blog.
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