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Yes Bank share price zooms 50% intraday to Rs 88 ahead of lifting of withdrawal limit

Yes Bank share price zooms 50% intraday to Rs 88 ahead of lifting of withdrawal limit

Yes Bank share price zooms 50% intraday to Rs 88 ahead of lifting of withdrawal limit
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By Ankit Gohel  Mar 18, 2020 10:20:41 AM IST (Published)

Shares of Yes Bank rallied almost 50 percent on Wednesday early trade as the bank will resume its services later today after the moratorium imposed by the Reserve Bank of India (RBI) ends at 18:00 IST today.

Shares of Yes Bank rallied almost 50 percent to an intraday high of Rs 87.95, before giving up some gains, ahead of the lifting of the withdrawal cap on depositors at 6 pm today.

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The shares have advanced 244 percent in 3 sessions after its reconstruction scheme came into effect, and have risen from a low of Rs 5.95 that it hit on March 6, a day after the government imposed a moratorium and the RBI took over its board.
The stock has been rising despite a three-year lock-in period for 75 percent holdings of investors owning 100 or more shares of the bank. Analysts have said that the share price rise is also partially because of the lock-in, as the sudden reduction in free float of shares has resulted in short-sellers of the stock's futures having to cover up their shorts to deliver their shares.
Yes Bank stock will be dropped from benchmark index Nifty 50, banking index Nifty Bank and other Nifty indices from March 19, National Stock Exchange had said.
Yes Bank CEO-designate Prashant Kumar on Tuesday said there are absolutely no worries on the liquidity front and that complete operational normalcy would be restored from 6 pm on Wednesday.
"We have made adequate precautions. All our ATMs are full of cash. All our branches have an adequate supply of cash. So, from Yes Bank side, there is absolutely no issue on the liquidity front," Kumar told reporters here on Tuesday.
He also clarified that there would not be any need to depend on external sources for liquidity.
On March 5, the Reserve Bank of India (RBI) imposed a moratorium on the troubled private sector lender, including capping withdrawals at Rs 50,000 per depositor.
Meanwhile, on Monday, rating agency Moody's upgraded the lender's rating and changed its outlook to positive.
Moody's Investors Service upgraded Yes Bank's long-term foreign currency issuer and foreign currency senior unsecured MTN program ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3, respectively. It also confirmed the bank's long-term foreign and local currency bank deposit ratings at Caa1, Moody's said in a press release.
Moreover, it confirmed the bank's long-term domestic and foreign currency Counterparty Risk Rating (CRR) and long-term Counterparty Risk Assessment (CR Assessment) at Caa1 and Caa1 (cr), respectively.
Last week, the government notified the plan for eight banks to carry out a Rs 10,000 crore bailout for the lender. Yes Bank has allotted 1,000 crore equity shares to seven private banks and the state-run State Bank of India for a total consideration of Rs 10,000 crore.
At 9:55 am, shares of Yes Bank were trading 25.92 percent higher at Rs 73.85 on the BSE.
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