Global ratings agency Moody’s Investors Service on Thursday downgraded the ratings of the private sector lender, with a negative outlook, expressing concerns on its asset quality troubles and shrinking capital buffers.
PTI
Updated:December 6, 2019, 5:50 PM IST
Image for representation. (Photo: Reuters)
New Delhi: Shares of Yes Bank crashed over 10 per cent on Friday, hit by ratings downgrade by Moody’s Investors Service. The lender’s shares settled 9.82 per cent lower at Rs 56 on the BSE. During the day, the scrip fell to Rs 55.20, down 11.11 per cent from the previous close.
Similarly, the stock dived 10.47 per cent to Rs 55.60 per unit on the NSE. Intra-day, it fell 11.15 per cent to Rs 55.15. In terms of volume, more than 28 crore shares were traded on the NSE during the day, while over two crore shares changed hands on BSE.
Global ratings agency Moody’s Investors Service on Thursday downgraded the ratings of the private sector lender, with a negative outlook, expressing concerns on its asset quality troubles and shrinking capital buffers.
The rating downgrade comes days before the board of the bank is slated to meet to finalise fund raising plans on December 10. It also said the bank’s claim to have received investor interest to the tune of USD 2 billion has “significant execution risks around the timing, pricing as well as regulatory approvals”.
“Yes Bank’s funding and liquidity compares weakly to other rated private sector peers, and can come under pressure if the bank failed to strengthen its solvency in the next few quarters,” it added. Shares of Yes Bank ended with losses in four out of five trading sessions this week.
The stock managed to gain nearly 6 per cent on Wednesday.
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Source: News18