“The stock and bonds both are reflecting investor concerns on asset quality, where slower resolutions and rising stress could continue to pose pressure,” said Diksha Gera, a Bloomberg Intelligence analyst.
The drop in Yes Bank’s share price on Tuesday was “primarily on account of the forced sale” of 100 million shares, “triggered by an invocation of pledge on the equity shares of a large stakeholder,” the bank said in a statement on Wednesday. Its financial and operating metrics remain “intrinsically sound” and stable, with its liquidity position “well in excess of regulatory requirements,” it added.
A report had previously said that Yes Bank
shares pledged by its co-founder Rana Kapoor, have been sold. The India stock market is closed today for a holiday.
Kapoor stepped down as chief executive officer earlier this year after the Reserve Bank of India refused to grant him another three-year term amid a controversy over bad-debt accounting.