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Yes Bank shares erase early losses, jump over 7%

Yes Bank shares erase early losses, jump over 7%

Yes Bank shares erase early losses, jump over 7%
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By Mousumi Paul  Nov 4, 2019 10:45:11 AM IST (Updated)

The share price of YES Bank erased losses to trade over 2 percent higher on Monday after CEO Ravneet Gill assured investors about the bank's asset quality and capital raising plans.

The share price of Yes Bank erased losses to trade over 2 percent higher on Monday after CEO Ravneet Gill assured investors about the bank's asset quality and capital raising plans.

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Yes Bank shares had plunged as much as 14.93 percent to Rs 56.65 per share on the NSE in early trades after the bank's Q2 net loss widened due to a sharp increase in non-performing assets.
Yes Bank has received bids worth $1.5 billion from eight investors, Ravneet Gill told CNBC-TV18 in an exclusive interview. Gill further said, apart from bids worth $1.5 billion, various investors and family offices are interested in the bank.
Without divulging details about the $1.2 billion binding bid that Yes Bank received, Gill said it is backed by a "large US financial institution." He said, "The bank should be able to announce details of binding bid in a few days."
The stock jumped as much as 7.05 percent to Rs 71.30 per share.
Yes Bank reported a net loss of Rs 600.08 crore in Q2 September 2019 as compared to the net profit of Rs 964.70 crore in Q2 September 2018. Net interest income slipped 9.6 percent YoY.
There was a one-off impact of Rs 709 crore due to deferred tax assets adjustment, which resulted in a loss during the quarter gone by, said the management while addressing a conference call on November 1.
Most brokerages remained bearish on the stock. Phillip Capital cut its target price to Rs 50 from Rs 85 earlier.
Kotak Institutional Equities in its report, "We are still unsure of growth, excess capital, the path of RoE improvement given the changes in lending, the progress of building the bank’s liability franchise that is currently inferior to its peers and profitability. The stability of senior management is critical at this juncture. We still see a lot of headwinds, which give us discomfort to change our view of the bank despite a steep price decline."
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