YES Bank share hits fresh 52-week low despite RBI nod to raise authorised share capital

Shares of YES Bank declined nearly 15% to hit a fresh 52-week low of Rs 41.5 on the Bombay Stock Exchange on Monday even as the private lender said it has received approval from the Reserve Bank of India (RBI) to increase its authorised share capital.

"Further to our communication dated September 25, 2019, on the captioned subject, the bank is pleased to inform you that it has received an acknowledgement from the Reserve Bank of India to go ahead with the proposed increase in its authorized share capital," YES Bank said in a exchange filing.

The private lender will seek necessary shareholders' consent and proceed expeditiously with its capital raise, the filing added.

YES Bank stock fell 14.96% to hit a new 52-week low of Rs 41.5 on BSE today. The stock has traded in a wide range of Rs 7.6 and has been highly volatile in today's trade with an intraday volatility of 11.41%

In terms of market depth, 84% sellers stand against 17% buyers offering the stock. The YES Bank stock currently trades lower than its 30, 50, 150 as well as 200-day moving average.

As of 1330 IST, shares amounting to 243.9 lakh and 2,753.5 lakh shares changed hands on BSE and NSE.

YES Bank stock has been on a downfall for the last one year due to lender's high exposure to non-performing assets (NPAs). YES bank has been under pressure to raise funds for quite some time now.

Last week, the YES Bank's promoter sold 1.8% stake in the lender to prepay Rs 630 crore borrowed from Franklin Templeton Asset Management via non-convertible debentures. The regulatory statement submitted on September 26 said, "The proceeds will be utilised to prepay balance outstanding Non-Convertible Debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management."

"The bank has received strong interest from multiple foreign as well as domestic private equity and strategic investors for this capital raise and remains firmly on course to raising growth capital subject to the necessary approvals, " the bank had said.

Recently, on September 19, CARE Ratings lowered the rating of non-convertible debentures (NCDs) issued by the YES Bank worth Rs 800 crore to BBB- from A-. "The rating is based on the internal credit enhancement in the form of a pledge of unencumbered listed shares of YES Bank held by MCPL or its promoters and their relatives in favour of the Debenture Trustee," CARE Ratings had said.

On August 28, global rating agency Moody's Investors Service too downgraded YES Bank's long-term foreign-currency issuer rating to Ba3 from Ba1 and maintained 'negative' outlook with concerns over lower than expected amount of capital raised by the bank.

As of 1345 IST, shares of YES Bank were trading 13.32% lower at Rs 42.30 on the BSE.

By Rupa Burman Roy

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