YES Bank stock runs out of steam, tumbles 5.58% on profit booking

The YES Bank stock  fell in afternoon trade today after investors, traders booked profit in the scrip which surged 11.09% in two sessions last week. The large cap stock gained 11.09% in two sessions after the lender named Ravneet Singh Gill as its CEO and MD on Thursday last week.

The stock which was trading near 193 level before the big announcement surged 26.65 points to close at 219.65 on Friday.

The stock lost 5.58% to 207.40 on the BSE  compared to its previous close of 219.65 level on the BSE. It rose to intra day high of 223.20 in trade today. However, the stock is trading 48.16% lower from its 52-week high of 404 level.

The stock has fallen 42.39% during the last one year but gained 15.21% since the beginning of this year.

30 of 48  brokerages rate the stock "buy" or 'outperform', 13 "hold", three "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.

Also read: Yes Bank appoints Ravneet Gill as new CEO to replace Rana Kapoor

The stock was trading above its 50 day moving average of 187.98 but below its 200 day moving average of 257.39.

On Thursday, the lender named Ravneet Singh Gill, currently heading Deutsche Bank India, as the managing director and chief executive to succeed Rana Kapoor, whose term ends on January 31.

The Reserve Bank had last September asked Kapoor, who is one of the promoters of the city-based lender along with his wife Bindu Kapoor, to leave the office by the end of this month.

Also read:YES Bank CEO Ravneet Singh Gill: 5 challenges he will face in the new job

The board of the lender will meet on January 29 to finalise the interim transition.

It can be noted that after the RBI move, the bank shares had lost more than two-thirds of its value. Even after today's rally, the stock is almost 40 percent below its 52-week high of 404 level.

Though the RBI had not cited any specific reasons while not accepting a new three-year term for Kapoor and asked him to leave latest by January 31, it is attributed to under- reporting of bad loans for two years by the bank under Kapoor's watch.

The lender reported a 6.96 per cent fall in net profit to Rs 1,001.85 crore in the quarter ended December 2018. Its net profit stood at Rs 1,076.87 crore in the corresponding quarter of 2017-18.

The private sector lender said net provisions stood at Rs 550.2 crore on account of Rs 570.8 crore of accelerated provisioning on exposure to a "stressed infrastructure conglomerate", according to a stock exchange filing.

The bank, however, did not name the conglomerate.

The bank's net interest income grew 41.2 per cent year-on-year (y-o-y) to Rs 2,666.4 crore.

Its advances grew 42.2 per cent y-o-y to Rs 2,43,885 crore.

YES Bank's gross non-performing assets (NPA) increased to 2.1 per cent of the total advances in the quarter, compared with 1.72 per cent in the year-ago period. Net NPAs also increased to 1.18 per cent from 0.93 per cent.

 Meanwhile, the Sensex was trading 348 points lower at 35,690. The Nifty too lost 106 points to 10,674.

Edited by Aseem Thapliyal