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<ul><li>Yes Bank is expected to<a href="https://economictimes.indiatimes.com/markets/stocks/earnings/yes-bank-q1-results-on-wednesday-will-it-be-a-second-straight-loss-for-the-bank/articleshow/70239656.cms"> post as much</a> as ₹500 crore loss tomorrow according to a Kotak Equities report.</li><li>Since March this year, as much as 50% of the bank’s value was shaved off. This was after the banking regulator insisted that its founder Rana Kapoor step down.</li><li>YES Bank’s exposure in Anil Ambani Group companies stands at around 2.9% of its loan book.</li><li>Its exposure to the DHFL, Indiabulls and Essel groups combined exceeds around 4% of the gross loan book.</li></ul> Yes Bank is expected to<a href="https://economictimes.indiatimes.com/markets/stocks/earnings/yes-bank-q1-results-on-wednesday-will-it-be-a-second-straight-loss-for-the-bank/articleshow/70239656.cms"> post as much</a> as ₹578 crore loss tomorrow according to a Kotak Institutional Equities report, as it declares it quarterly earnings. In spite of this, today its stock rallied by 11.4% on rumours that it has received an offer from an international private equity investor. This is light at the end of the tunnel. Since March this year, as much as 50% of the bank’s value has been shaved off. This was after the banking regulator insisted that its founder Rana Kapoor step down over allegations that it has not been disclosing the bad loans on its books accurately. Understandably, brokerages have all but given up hope. “YES has dug itself into a hole. Its stock price has breached levels we would not have previously anticipated in any rational or logical assumptions, and now trades materially below our last published downside price,” said a report by Jeffries equity report. 
 
 
 
 
 
 
 
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 Toxic Exposure Oil baron Paul Getty once famously said that, “If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem”. And, Yes Bank has a lot of problems from a lot of groups who are slipping down a slippery slope. Some of their notorious creditors include housing finance company Dewan Housing Finance Limited (DHFL), which has declared recently that it might not be<a href="https://www.businessinsider.in/dhfl-stock-crashes-9-93-in-early-trade-to-61/articleshow/70222831.cms"> able to survive</a> as a going concern. Yes Bank also has a lot of exposure to Anil Dhirubhai Ambani Group (ADAG), many of whose companies like Reliance Capital and Reliance Home Finance have gone through rating downgrades aside from auditors pointing out problems with the books of Reliance Infrastructure and 
 
 
 
 
 
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. Around half of Yes Bank’s loans to the construction sector are with ADAG projects, linking its fate with the troubled group. “YES Bank’s exposure in ADAG group stands at around 2.9% of loan book as per recent Ministry of Corporate Affairs (MCA) filings. Apart from this, the bank’s exposure to the DHFL, Indiabulls and Essel groups combined exceeds around 4% of gross loan book,” said a report by Elara Securities. Repairing the bank Like many top banks including SBI, changing the management is expected to do the trick. The new management led by Ravneet Gill has been working towards bringing in new investors. However, the bank management refuted rumours of a possible deal reported in the media today. “The bank in its ordinary course of its business continues to explore various means to raise capital, funds through issuance of securities to diverse set of investors, in order to meet its business, regulatory requirements,” the bank told the stock exchanges. According to Elara, a stake sale would instill confidence. They are also watching how the bank can grow, as ‘repair work’ is in progress, as there would be less room for credit growth as its books are cleaned. But new capital coming into the bank can change that. And, brokerages expect the management to walk the talk. “Not surprisingly, management assurances have helped little. Upside rationale, if any, completely hinges on the bank's ability to raise capital. Clearly there's more than meets the eye, perhaps a limited clean up of asset quality issues, something we had alluded to in our earnings assessment, keeps the street on the edge,” said Jeffries.

Yes Bank’s investors are desperate for a buyer amid fears of a massive quarterly loss

<ul><li>All of SBI’s windfall from SBI Life stake sale went into provisioning for bad loans.</li><li>ICICI Bank stock could be re-rated based on its exposure to latest list of troubled firms.</li><li>HDFC Bank’s retail loan quality has not deteriorated but slow pick up in auto loans might affect it in the future.</li><li>Kotak Mahindra Bank is already affected by slow uptake in loans and its credit costs are also growing.</li></ul>There has been a lot of fear around the health of Indian banks, including the large ones, for a while now⁠— largely due to rising bad loans. However, if you look at some of the top banks in the country⁠— like the State Bank of India (SBI), ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Yes Bank⁠— one would find that the factors that affect the earnings are largely different. Yes Bank’s gross non-performing assets or basically loans where recovery is tough stands at ₹17,134 crore which is more than four times what it was in the same quarter last year-- ₹3,866 crore. And it might have <a href="https://www.business-standard.com/article/finance/yes-bank-stock-falls-by-15-as-investors-worry-over-hdil-dhfl-exposure-119093001180_1.html">more to come </a>because of its extensive exposure to troubled shadow banks like Housing Development Infrastructure (HDIL) and Deewan Housing Finance (DHFL). Not just that, it also has exposure to Anil Dhirubhai Ambani Group and Essel Group as well. In this regard, SBI has more to worry about the crisis in the country’s shadow banks, whereas Kotak and HDFC Bank are largely untouched by the same crisis because they lend more to individuals than corporates, while ICICI Bank too has managed to curb its exposure to troubled sectors like telecom and real estate financiers. The same cannot be said for Yes Bank, whose bad loans have been consistently rising over the last one year. 
 
 
 
 
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 The SBI story The fortunes of India’s largest bank State Bank India depends on the survival of the shadow banks that it has lent to. After the IL&amp;FS debacle last year, a lot more are in the line and it has an exposure to Dewan Housing Finance which has not yet sunk but on thin ice. Yet this quarter has been better than expected for SBI as its profits went up three times over from the same quarter last year. But that is not the best news it has received this quarter. Its slippages which is basically the extent of loans that have turned bad---have come down by half. Going ahead, its health will depend on how it holds onto this number and DHFL’s survival is extremely important. But the bank is confident that its slippages will not go down below 2%. For a bank with a vast loan book, it is as high as ₹8,000 crore. Basically, it’s a good enough quarter for SBI if its loans worth this ₹8,000 crore turn bad, and not more! ICICI Bank has corrected its course over time The country’s largest private bank ICICI Bank too has an asset quality problem and its extent of slippage is lower too. Its slippages came at ₹2,480 crore for the quarter -- at around 1.7% of its total loans. The improving asset quality has helped the stock price which has gained 17.2% in the last six months. “Importantly, it displays no large stress exposure to some downgraded groups or emerging stress groups, while also has lower exposure to telecom, housing finance companies, non-banking financial companies and builders,” said a report by Prabhudas Liladher. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
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 As much as ₹1,260 crore worth loans recovered to get off the ‘dud’ category and that is much better news. When banks have fewer bad loans on their books, they have to keep less amount aside -- as per regulations. It means they will have more amount at their disposal to lend, which also doubles as growth money in case of banks. This will help the bank compete with other private banks on a war path of growth like Kotak Mahindra and HDFC Bank which are exhibiting double digit growth. Individual borrowers in India are better in repaying loans than companies⁠— and that helps HDFC Bank and Kotak Mahindra. While HDFC’s loan growth is at 15% from last year, in spite of the fact that this bank which lends to individuals instead of corporates is seeing lack of interest for two good segments -- auto and housing. The loan book of Kotak Mahindra which has a mix of retail and corporate clients grew by 20%. But these banks will see the effect of slowdown that is lulling the economy. “Slower-than-expected loan growth will likely delay the leveraging up process and higher than expected slippages and credit costs given weaker macros. Weakness in capital markets would impact the flow businesses,” said Nomura in a report on Kotak Mahindra Bank. While other banks are offering lower rates for deposits, an aggressive Kotak Bank is offering rates as high as 8% to ensure it has enough money to lend to its borrowers. But that has also meant that it has a narrower profit margin.

What bothers Yes Bank does not bother its bigger peers as much

Equity benchmark BSE <keyword id="6484188" type="DEFINITION" weightage="20" keywordseo="sensex">Sensex</keyword> declined by 141 points after a volatile session on Monday, dragged down by losses in index heavyweights ITC, TCS, L&amp;T, HDFC twins and Infosys amid weak global cues. After swinging 439 points during the day, the 30-share Sensex ended 141.33 points, or 0.38 per cent, lower at 37,531.98. It hit an intra-day low of 37,480.53 and a high of 37,919.47. The broader NSE <keyword id="6354813" type="UNKNOWN" weightage="20" keywordseo="Nifty">Nifty</keyword> dropped 48.35 points, or 0.43 per cent, to close at 11,126.40. Top laggards in the Sensex pack included ONGC, ITC, Tata Steel, M&amp;M, Tata Motors, L&amp;T, TCS, Sun Pharma, NTPC, IndusInd Bank and Tech Mahindra, falling up to 2.97 per cent. Bucking the trend, shares of Yes Bank rallied over 8 per cent on Monday on prospects of fresh investments in the company. Axis Bank, Bajaj Auto, Bharti Airtel, ICICI Bank, Hero MotoCorp and Bajaj Finance also rose up to 2.53 per cent. According to experts, market has been witnessing profit-booking post the recent rally on account of corporate tax cut. The cut in repo rate by the Reserve Bank of India also did not inspire confidence in investors, given the sharp downgrade in economic growth forecast. Weak cues from other Asian and European equities too weighed on investor sentiment, they said. Elsewhere in Asia, Kospi settled marginally higher, while Nikkei closed in the red. Markets in Shanghai and Hong Kong were closed for a holiday. Equities in Europe were trading lower in early sessions. Meanwhile, the rupee depreciated by 18 paise to 71.07 against the US dollar intra-day. Brent crude futures, the global oil benchmark, advanced 0.41 per cent to USD 58.61 per barrel.

Sensex falls by 141 pts but Yes Bank stock price rallies 8%

<ul><li>Yes Bank’s net profit stood at ₹114 crore for the first quarter of 2019-20, which fell by a massive 94.4% from the same quarter last year, at ₹1,265 crore. </li><li>Its non-performing assets or loans that have turned bad, stood at ₹6,883 crore. </li><li>The bank’s net interest income grew 2.8% y-o-y to ₹2,281 crore during the quarter. </li></ul> Yes Bank posted as much as ₹114 crore in net profits for the first quarter of 2019-20, beating street predictions that it would post heavy losses. However, its profits fell by a massive 91% from the same quarter last year, at ₹1,265 crore. In addition, the report has a lot of cause for worry. Its provisions which is the amount a bank sets aside in case a loan goes bad, is at a massive ₹1,785 crore, which ballooned from ₹625 crore in the same quarter last year. As per the bank’s earnings report, its non-performing assets or loans that have turned bad, stood at ₹6,883 crore. An NPA account with an exposure of ₹411 crore was sold to an asset restructuring company during the quarter, the bank had said. ‘Quarter of Consolidation’ The bank’s net interest income grew 2.8% y-o-y to ₹2,281 crore during the quarter. This is in spite of absorbing an impact of ₹223 crores of interest reversals on account of slippages during the quarter, the bank said. “This was a ‘Quarter of Consolidation’ in which the bank has demonstrated strong resilience in revenues and asset quality. We believe that earnings trajectory should strengthen significantly from hereon,” the bank said in a press release. In anticipation of possible losses, the bank’s stock closed 5.2% lower in today’s trade, at ₹98.4. A Kotak Equities had forecasted that Yes Bank will<a href="https://economictimes.indiatimes.com/markets/stocks/earnings/yes-bank-q1-results-on-wednesday-will-it-be-a-second-straight-loss-for-the-bank/articleshow/70239656.cms"> post as much</a> as ₹500 crore in losses. Brokerages believed that this quarter too, like last quarter would end in red, when it had posted a loss of ₹1,508 crore. The brokerages have also been worried ever since the stock has been taking a beating since March this year. As much as 50% of the bank’s value was shaved off, after the banking regulator insisted that its founder Rana Kapoor step down, over allegations that it has not been making disclosures on its asset quality as per norms. The quality of the bank’s assets has been a cause for worry to investors and analysts alike. “YES Bank’s exposure in Anil Dhirubhai Ambani Group stands at around 2.9% of loan book as per recent Ministry of Corporate Affairs (MCA) filings. Apart from this, the bank’s exposure to the DHFL, Indiabulls and Essel groups combined exceeds around 4% of gross loan book,” said a report by Elara Securities on June 26. SEE ALSO <a href="https://www.businessinsider.in/business/yes-bank-share-price-rises-hoping-for-a-buyer-ahead-of-earnings/articleshow/70248683.cms">Yes Bank’s investors are desperate for a buyer amid fears of a massive quarterly loss</a>

Yes Bank profits dropped 91%-- but it was still way better than expectations

<ul><li>Yes Bank’s stock slipped by a massive 11.6% in early trade today, after it beat street expectations and posted profits. </li><li>Yes Bank posted as much as ₹114 crore in net profits for the first quarter of 2019-20, as compared to ₹1,265 crore in the same quarter last year. </li><li>The stock had been volatile for the last few days. It slipped 5% yesterday, but went up by 11.4%, the day before. </li></ul> Yes Bank’s stock slipped by a massive 11.6% in early trade today, even as it beat street expectations and posted profits. Though its net profit dropped by 91%, analysts and brokerages have been expecting it to post massive losses, like it did in the last quarter. The stock was trading at ₹87.4, at 9:40 am. The stock had been volatile for the last few days. In anticipation of a quarterly loss, it slipped 5% yesterday, but the day before it rallied 11% on rumours that it struck a deal with private equity investors to sell stake, which the bank denied later. Brokerages however are not rushing into change their stance on the stock. Credit Suisse and J P Morgan maintained their ‘neutral’ rating, while Morgan Stanley maintains an underweight on account on ‘slippages’ during the quarter. Only CLSA was confident of its performance, on expectations that will be able to raise capital. “Management expects a capital raise in the second quarter, and expect 60% of stressed book to slip; retail push is key,” the brokerage said. Yesterday, Yes Bank posted as much as ₹114 crore in net profits for the first quarter of 2019-20, as compared to ₹1,265 crore in the same quarter last year. Last quarter which is the fourth quarter of 2018-19, it posted massive losses to the tune of ₹1,508 crore. The bank’s net interest income grew 2.8% y-o-y to ₹2,281 crore during the quarter. This is in spite of absorbing an impact of ₹223 crores of interest reversals on account of slippages during the quarter, the bank said. Heavy Provisions The quarterly report has a lot of cause for worry. Its provisions which is the amount a bank sets aside in case a loan goes bad, is at a massive ₹1,785 crore, which ballooned from ₹625 crore in the same quarter last year. As per the bank’s earnings report, its non-performing assets or loans that have turned bad, stood at ₹6,883 crore. An NPA account with an exposure of ₹411 crore was sold to an asset restructuring company during the quarter, the bank had said. The bank management is however confident that it will grow from hereon. “This was a ‘Quarter of Consolidation’ in which the bank has demonstrated strong resilience in revenues and asset quality. We believe that earnings trajectory should strengthen significantly from hereon,” the bank said in a press release.

Yes Bank's share price is not celebrating the surprise profit because it has a capital problem

<ul><li>Yes Bank has been looking for an investor and Hong Kong-based SPGP Holdings has reportedly has made a $1.2 billion binding offer.</li><li>Earlier this year, SPGP Holdings’ bid for Reid &amp; Taylor was rejected because it failed to deposit the earnest money, a paltry sum of ₹2 crore.</li><li>Yes Bank’s share price soared nearly 30% after the announcement but investors must remember the proof of the pudding is in the eating.</li></ul>Cash-strapped Yes Bank has been looking for an investor and Hong Kong-based SPGP Holdings has reportedly has made a ₹8,500 crore ($1.2 billion) binding offer, according to a television channel CNBC-TV18. Investors who were anxious about the bank’s survival heaved a sigh of relief and bet big money, taking the stock of Yes Bank higher by as much as 30% in afternoon trade on October 31. Earlier in August, Yes Bank had raised ₹1,930.46 crore through qualified institutional placement to fund its business expansion. The share price has more than doubled from its <a href="https://economictimes.indiatimes.com/markets/stocks/news/whats-next-for-yes-bank-after-shares-double-from-decade-low/articleshow/71823268.cms">ten year low </a>it hit this month in anticipation of such fundraising. However, investors must remember the same SPGP Holdings bid for Reid &amp; Taylor earlier this year. It <a href="https://www.thehindubusinessline.com/companies/nclt-mumbai-puts-rtils-liquidation-plans-on-hold/article25892000.ece">reportedly</a> had a corpus of $250 million but the bid was eventually rejected by the court because SPGP Holdings failed to deposit the earnest money, a paltry sum of ₹ 2 crore. The two-judge bench at India’s bankruptcy court slammed SPGP Holdings as they rejected its bid and handed it over to another Gujarat-based asset reconstruction firm. “You painted a rosy picture and misrepresented facts before us. This is just not correct. We waited for one week and now you say you cannot pay. This is contempt of court. You may withdraw your application. We are very unhappy with you,” Justice Mohan <a href="https://economictimes.indiatimes.com/markets/stocks/news/reid-taylor-case-court-dismisses-spgps-plea-new-investor-in-the-fray/articleshow/67551449.cms?from=mdr">reportedly</a> told SPGP director Pankaj Agarwal, who was present in court. For now, Yes Bank’s investors are in cloud nine. "The bank also continues to be in advanced discussions with other global and domestic investors," Yes Bank’s statement said, adding that the fundraising plan is subject to regulatory approvals and bank's board and shareholders approvals. The stock has lost over 60% of its value since the start of this year to hit a ten-year low. 
 
 
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 Hope floats that Yes Bank may come out of its current cash crunch and crisis of confidence, which is why the share price of Yes Bank has more than doubled in recent weeks. But investors must remember the proof of the pudding is in the eating. SEE ALSO: <a href="https://www.businessinsider.in/yes-bank-plans-to-grow-25-by-2020/articleshow/71105078.cms" data-type="tilCustomLink" target="_blank">YES Bank wants to customize branches, ramp up digitize customer acquisition to grow at a breakneck speed of 25%</a> <a href="https://www.businessinsider.in/yes-bank-stock-spikes-11-6-in-early-trade-as-it-stays-clear-of-losses/articleshow/70271361.cms">Yes Bank's share price is not celebrating the surprise profit because it has a capital problem</a> <a href="https://www.businessinsider.in/yes-bank-q1-earnings-report-yes-bank-share-price-q1-earnings-repor/articleshow/70261380.cms">Yes Bank profits dropped 91%-- but it was still way better than expectations</a>

Yes Bank’s white knight SPGP Holdings didn’t have ₹2 crore to bid for Reid & Taylor in Jan 2019

<ul><li>The share price has seen sharp rises and falls in recent months-- adding up to a fall of 72% since Gill took over.</li><li><keyword id="45660" type="CITY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> second quarter earnings were worse than expected. </li><li>The stock lost another 3% plus today after the gross NPA rose over 2.5x in last 3 months.</li></ul>Ravneet Gill moved from Deutsche Bank to take over as the Chief Executive Officer of Yes Bank in March 2019. The share price has lost nearly three-fourths of its value since then. The value erosion in the bank’s share price has to do with a lot of older, hidden dirt coming to the fore. But that’s not the only factor. The confidence of both the investors and depositors has been tested repeatedly by events that have followed. The latest among the news around Yes Bank has been the shocking spike in bad loans⁠— nearly two-and-a-half times jump in just 3 months⁠— and the unexpected loss in the September quarter. “The events that have been unfolding recently corroborate our longstanding negative stance on the stock,” a Kotak Institutional Equities report said on November 2. The stock lost another 3% plus in the first trading session after the earnings on November 4. Here’s a look at how Yes Bank has waded through its worst crisis under the stewardship of its new CEO Ravneeet Gill in the last eight months. 
	
	
	
	
	
	
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Yes Bank under CEO Ravneet Gill⁠— eight months of wild mood swings

<ul><li><keyword id="45660" type="CITY" weightage="20" keywordseo="Yes-Bank">YES Bank</keyword> has reported its highest quarterly net <keyword id="6362247" type="UNKNOWN" weightage="20" keywordseo="Profit">profit</keyword> ever since December 2018 at ₹207 crore.</li><li>Shares of YES Bank surged 5% as investors are cheering the company’s highest profit mark in recent times.</li><li>However, analysts remain disappointed with the company on high stress loans and recommend a ‘sell’ rating on the stock.</li></ul>Shares of YES Bank surged 5% on July 26 as the private bank reported a four-fold jump in its net profit to ₹207 crore in June quarter compared to a profit of ₹45 crore the same time last year. This is the highest profit for the private bank since December 2018. While investors cheered YES Bank’s good profit growth in recent years, some analysts remain disappointed with the company on high stress loans and recommend a sell rating on the stock. At 11:36 a.m., on July 26, shares of YES bank were trading 4.98% higher at 13.70 rupees. <div type="image" title="yes banks shares" height="900" width="1200" msid="84751111" hostid="261"></div> The sudden jump in the lender’s profit is because of the lower provisions made for bad loans held with the bank. It has lowered provisions by 88% to ₹644 crore in June. The bank also expects the provision requirement to go down going ahead. However, analysts studying the bank’s fundamentals and financials do not feel the same. “While there is a significant improvement in <keyword id="6357061" type="SPONSORED" weightage="20" keywordseo="earnings">earnings</keyword> in Q1, profitability remains low with return on assets of 0.3%, and stress loans remain uncomfortably high at 29%... We expect credit cost to rise to 2.1% in FY23E [expected] as ageing provisions catch up,” said a report by Elara Capital while recommending a ‘sell’ rating on the stock. Meanwhile, analysts at Kotak Institutional Equities believe that earnings are far too volatile given the impact slippages have on interest income (NII) and provisions. The bank’s capital position is above regulatory requirements, but the flexibility to make higher provisions is quite limited, said the report while maintaining a ‘sell’ rating on the stock. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/yes-bank-has-reported-its-highest-net-profit-since-december-2018-at-207-crore/articleshow/84678691.cms">YES Bank’s net profit grows four fold as provision for bad loans shrink </a> <a href="https://www.businessinsider.in/science/health/news/healthcare-startup-veera-raises-3-million-to-reach-more-pcos-patients/articleshow/84749847.cms">A Wharton MBA grad and a former GSK exec’s healthcare startup raises $3 million to reach more PCOS patients </a>

YES Bank shares surge 5% as investors see a ray of hope after bank reported four fold growth in profit

Before the Reserve Bank of India put in a limit of ₹50,o00 on withdrawals by depositors in Yes Bank, the shares of the private bank zoomed nearly 27% on March 5 on source-based reports that the government has asked the State Bank of India (SBI) to lead a consortium to buy stake in Yes Bank. 
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 However, the midnight statement from SBI, the country's largest bank, was far more non-committal than what investors of Yes Bank would hope for. SBI and the Life Insurance Corporation of India (LIC) will acquire shares at ₹2 per share. The two state-run companies will acquire 49% stake for a total of ₹490 crore, the Economic Times reported citing sources. However, SBI seems to be approaching Yes Bank with more than adequate caution. "No such negotiations/events took place. However, the matter in regard to Yes Bank was discussed at the meeting of the Central Board of the Bank on March 5 and an in-principle approval has been given by the Board to explore investment opportunity in the Bank," the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/477eac4e-fa44-4a91-82e8-7394795624d4.pdf" data-type="tilCustomLink" target="_blank">SBI response to the exchanges said</a>. 
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 In essence, SBI is saying that it will explore the possibility of investing in Yes Bank but it is no way a certainty. This is yet another example of how investors, particularly the small investors, have been trapped buying shares of Yes Bank based on rumours. Between June and September 2019, the public stake in Yes Bank has more than doubled as people bought the bank's shares hoping to make a quick buck while the big investors including institutions offloaded their stake in the bank that was slowly sinking into an abyss. Global brokerage JP Morgan reportedly said that the bailout will come at a large cut for equity holders. "We believe forced bailout investors will likely want the bank to be acquired at near zero value to account for risks associated with the stress book and likely loss of deposits (Q3 financials have still not been disclosed)," it said, according to an IANS report. Aside from this, people who have money deposited in Yes Bank accounts found themselves stuck as some ATMS, and even net banking including the mobile app did not function soon after the RBI announced the moratorium. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/yes-bank-mobile-and-net-banking-down-after-rbi-limits-withdrawals-to-50000/articleshow/74499754.cms" data-type="tilCustomLink" target="_blank">Yes Bank mobile and net banking down after RBI limits withdrawals to ₹50,000</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-mobile-and-net-banking-down-after-rbi-limits-withdrawals-to-50000/articleshow/74499754.cms" data-type="tilCustomLink" target="_blank">Yes Bank under CEO Ravneet Gill⁠— eight months of wild mood swings</a>

SBI statement on proposed Yes Bank bailout is far from reassuring

Shares of Yes Bank on Monday zoomed over 30 per cent after State Bank of India (SBI) said it will pick up 49 per cent stake in the cash-strapped lender for Rs 2,450 crore. The scrip witnessed a sharp rise, spiking 29.63 per cent to Rs 21 on the BSE. On the NSE, it jumped 32.20 per cent to Rs 21.35. SBI on Saturday announced it will pick up a 49 per cent stake in Yes Bank for Rs 2,450 crore and clarified that all the deposits and liabilities of the reconstructed bank will continue in the "same manner". "Yes Bank has 255-crore shares of Rs 2 per share. SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank," the State Bank said in a statement. SBI Chairman Rajnish Kumar had earlier said that it had set a maximum investment limit of Rs 10,000 crore for Yes Bank reconstruction process. SBI shares were trading over 4 per cent lower at Rs 258.50 on the BSE. Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise USD 2 billion initially during this fiscal, which was then pruned to USD 1.2 billion as it could not rope in any investor. See also: <a href="https://www.businessinsider.in/finance/news/finance-minister-assures-employment-and-salary-at-yes-bank-at-least-for-one-year/articleshow/74514015.cms">Finance Minister assures employment and salary at Yes Bank at least for one year</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-share-price-falls-10-after-rbi-limits-withdrawals/articleshow/74504094.cms">Yes Bank share price nose dives 72% after RBI limits withdrawals</a> <a href="https://www.businessinsider.in/finance/news/rbi-has-a-new-scheme-to-rescue-yes-bank-will-be-released-shortly-says-shaktikanta-das/articleshow/74506268.cms">RBI has a new 'scheme' to rescue Yes Bank — will be released shortly, says Shaktikanta Das</a>

Yes Bank shares shoot up by 30% after SBI decides to buy stake

<ul><li> The Mumbai-based bank posted a loss of ₹600 crore for the three months ended September 2019.</li><li>Yes Bank's share price has lost over 60% of its since the start of this year due to mounting cash crunch and the investors' anxiety with bank's earlier management.</li><li>Gross NPA, a measure of bad loans, spiked to 7.39% in the latest quarter, more than double compared to the first three months of 2019.</li></ul>The Mumbai-based Yes Bank posted a shocking loss of ₹600 crore for the three months ended September 2019. While the revenue fell 20%, costs rose during the quarter squeezing the operating profit by 40%. This is largely due to a sharp spike in bad loans. Gross NPA, a measure of bad loans, jumped to 7.39%— more than doubled compared to the level at the which the number was in the first three months of 2019. Gross NPA rose to ₹17,100 crore— nearly two and a half times more compared to three months ago. The amount of loans that turned sour during the quarter was over ₹5,945 crore. Making matters worse, Yes Bank had to take a one-time tax hit of ₹709 crore. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 In the last quarter ending June 2019, Yes Bank posted as much as ₹114 crore in net profit, 91% less compared to the same period a year earlier. However, it was way better than street predictions that it would post heavy losses. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 “This was a ‘Quarter of Consolidation’ in which the bank has demonstrated strong resilience in revenues and asset quality. We believe that earnings trajectory should strengthen significantly from hereon,” the bank said in a press release three months ago. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The brokerages have also been worried ever since the stock has been taking a beating since March this year. Over 60% of the bank’s share value has been shaved off since the start of this year. The stock of yes Bank even hit a ten-year low a few days ago, but since then it has doubled. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Hope floats that there will be a white knight who will bring in the money to help the bank to tide over the current cash crunch. Also read: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 “YES Bank’s exposure in Anil Dhirubhai Ambani Group stands at around 2.9% of loan book as per recent Ministry of Corporate Affairs (MCA) filings. Apart from this, the bank’s exposure to the DHFL, Indiabulls and Essel groups combined exceeds around 4% of gross loan book,” said a report by Elara Securities on June 26. SEE ALSO: <a href="https://www.businessinsider.in/yes-bank-plans-to-grow-25-by-2020/articleshow/71105078.cms" data-type="tilCustomLink" target="_blank">YES Bank wants to customize branches, ramp up digitize customer acquisition to grow at a breakneck speed of 25%</a> <a href="https://www.businessinsider.in/yes-bank-stock-spikes-11-6-in-early-trade-as-it-stays-clear-of-losses/articleshow/70271361.cms">Yes Bank's share price is not celebrating the surprise profit because it has a capital problem</a> <a href="https://www.businessinsider.in/yes-bank-q1-earnings-report-yes-bank-share-price-q1-earnings-repor/articleshow/70261380.cms">Yes Bank profits dropped 91%-- but it was still way better than expectations</a>

You Searched For "Yes Bank Stock Price" and got 11 results

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