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  Business   Market  15 Feb 2019  Yes Bank stock bounces 30 per cent

Yes Bank stock bounces 30 per cent

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Feb 15, 2019, 2:01 am IST
Updated : Feb 15, 2019, 2:01 am IST

The shares of the private bank closed at Rs 221 on the BSE, gaining 30.73 per cent or Rs 51.95 per share.

Last month Yes Bank shares had gained sharply, hitting a high of Rs 234, after the bank named Deutsche Bank CEO Ravneet Gill as its new MD & CEO from March 1.
 Last month Yes Bank shares had gained sharply, hitting a high of Rs 234, after the bank named Deutsche Bank CEO Ravneet Gill as its new MD & CEO from March 1.

Mumbai: Yes Bank shares made gains of over 30 per cent on Thursday and added over Rs 12,000 crore to its market capitalisation as the Reserve Bank of India gave a clean chit to the bank in its risk assessment report for FY 2018.

The shares of the private bank closed at Rs 221 on the BSE, gaining 30.73 per cent or Rs 51.95 per share and at Rs 222.60 on the NSE as overhang on the stock was removed with RBI’s risk assessment report observing nil divergences in bank’s asset classification and provisioning from the RBI norms.

“We believe this is a big positive for the banks as this allays concern related to NPA recognition process followed by the bank. Bank in its Q3 FY19 earnings had given credit cost guidance of 80 basis points for FY19 including any further provisioning related to IL&FS group, we believe this guidance is more realistic with overhang due to divergence is now over,” said foreign institutional broker PhillipCapital.

“We expect bank’s focus to now shift towards the growth. Bank has postponed its capital raise plans and curtailed its loan growth due to uncertainties related to top management and asset quality concerns. With uncertainties over we would expect bank to be in a better position to raise capital now, which will bring back the accelerated growth trajectory,” PhillipCapital said.

Last month Yes Bank shares had gained sharply, hitting a high of Rs 234, after the bank named Deutsche Bank CEO Ravneet Gill as its new MD & CEO from March 1.

Tags: yes bank, reserve bank of india