Friday, Apr 19, 2024 | Last Update : 06:19 PM IST
Yes Bank shares fall after ratings downgrade
The stock was trading 2.99 per cent down to Rs 45.35 on the BSE and the NSE.
New Delhi: Shares of Yes Bank fell nearly 3 per cent on Thursday after India Ratings downgraded the lender's long and short-term issuer ratings.
The stock was trading 2.99 per cent down to Rs 45.35 on the BSE and the NSE.
India Ratings and Research (Ind-Ra) backed the downgrade saying the private sector lender failed to meet the expectations with respect to equity infusions.
According to the rating agency, the liquidity position of the bank seemed adequate at end-September 2019.
In the absence of improvements on the capital side, the ability of the bank to manage its asset and liability maturities might be tested further, it said.
"The downgrade reflects the inadequate progress as per Ind-Ra's expectations with respect to the quantum and pace of equity infusions, which is critical for providing sufficient cushion for the credit cost impact of the stressed asset pool," India Ratings and Research said on Wednesday.
The bank is likely to face balance sheet expansion challenges over the short-to-medium term, it added.
