YES Bank share price falls 18% despite rating upgrade by ICRA

YES Bank share price extended decline for the fourth straight session on Wednesday and fell another 18% intraday on BSE.

This was despite a rating upgrade by ICRA on lender's stock bonds and other financial instruments.

Following the update, YES Bank shares touched an intraday low of Rs 28.65, falling 18.26% as against the previous closing value of Rs 35.05 on BSE. YES Bank stock has traded in a wide range of Rs 6.9.

The share price of the lender has fallen 51% in one week, 15% in one month and 36% since the beginning of the year. The stock has been highly volatile today with an intraday volatility of 15.24%.

The rating agency placed it under 'rating watch with developing implications' and upgraded the bank's Basel III compliant bonds, infrastructure bond programme, certificates of deposit programme and short-term fixed deposit programme.

"The rating upgrade factors in the removal of the moratorium on March 18, 2020, which was earlier imposed on Yes Bank Limited (YBL) by the Central Government, thereby restricting payments to its depositors and creditors," ICRA said.

ICRA added it comforts from the liquidity support to be provided by domestic financial institutions and the RBI, if required, post the removal of the moratorium. However, the stability of the deposit base, post the removal of the moratorium, will be a key driver of Yes Bank's liquidity over the medium term, the rating firm added.

YES Bank shares have lost 43.97% in the last 4 sessions since March 19, since the lender's single-largest promoter Madhu Kapur (widow of its founder-chairman Ashok Kapur) sold 2.5 crore bank shares in a block deal.

Share Market LIVE: Sensex gains 1,600 points, Nifty above 8,250; RIL, Maruti, Axis Bank up 8%

YES Bank share price extends losses after Madhu Kapur sells stake