YES Bank trades at its highest level since August 31; zooms 26% in 1 month

Topics YES Bank | Buzzing stocks | Markets

Recently, CARE Ratings upgraded the bank's rating on debt instruments with stable outlook
Shares of YES Bank were locked in the 5 per cent upper circuit band at Rs 15.38, its highest level since August 31, 2020, on the BSE on Tuesday. Till 01:15 pm, a nearly 400 million shares had changed hands on the BSE and NSE, and buy orders for 22 million shares were pending on the exchanges, data show.

In the past one month, YES Bank has outperformed the market by gaining 26 per cent, following the news of bank's inclusion in the MSCI India Index with effect from December 1. In comparison, the S&P BSE Sensex has rallied 12 per cent during the period.

Meanwhile, on November 9, CARE Ratings upgraded the bank's rating on debt instruments with stable outlook. CHECK RATINGS HERE

"The revision in the ratings assigned to the debt instruments of YES Bank factors in the improvement in the credit profile of the bank post the implementation of the reconstruction scheme announced by the Reserve Bank of India (RBI) and approved by Government of India (GOI) from March, 2020," CARE Ratings said in its rationale.

Besides, the ratings also factor in improvement in the bank's capitalisation levels post the follow on public offer (FPO) of equity shares by which the bank raised additional equity capital of Rs 15,000 crore in July, 2020, and bank's return to profitability in H1FY21. "The ratings also factors in improvement in bank's liquidity profile, majorly on account of stabilization in its deposits which also enabled the bank to repay the SLF (special liquidity facility) in September, 2020 prior to the due date," it said.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel