YES Bank shares rise over 4% in early trade; here's why

Shares of YES Bank rose over 4% today after the private lender said it has concluded assignment of the Rs 48,000-crore stressed asset loan portfolio of the bank to JC Flowers Asset Reconstruction company.

YES Bank stock climbed 4.24 per cent to Rs 22.10 against the previous close of Rs 21.20 on BSE today. YES Bank shares are trading higher than the 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. Stock of YES Bank has gained 64.26 per cent in a year and risen 57.66 per cent in 2022. In a month, the stock has gained 28.19 per cent.

Total 149.96 lakh shares of the firm changed hands amounting to a turnover of Rs 32.53 crore on BSE. Market cap of the bank climbed to Rs 53,996 crore in early trade today.

The bank had earlier declared JC Flowers Asset Reconstruction Private Limited (JC Flowers ARC) as the winner of the Swiss Challenge process for sale of its identified portfolio of stressed assets.

"The bank has now concluded assignment of identified stressed loan portfolio of the bank aggregating to up to Rs 48,000 crore as on March 31, 2022 under 15:85 structure, after adjusting recoveries between 1st April 2022 to 30th November 2022," Yes Bank said in a regulatory filing on December 17.

Also Read: Yes Bank shares fall 6% amid weakness in bank stocks; here's what analysts say

On September 20 this year, the board of YES Bank cleared the sale of a stressed loan portfolio of Rs 48,000 crore to asset reconstruction company JC Flower ARC.

YES Bank will buy 20 per cent stake in the ARC for Rs 350 crore, according to the term sheet inked with JC Flowers.

On the prospects of the stock, Osho Krishan, Sr. Analyst- Technical & Derivative Research, Angel One, said, "YES Bank has given a long-awaited breakout above the Rs 19.50-20 zone. On the technical front, the support base has shifted upward towards Rs 18-18.50 levels, and one may expect the northward rally to continue in a gradual form. The next resistance is placed around Rs 24-odd levels, followed by a Rs 30-odd zone."

Pavitraa Shetty from Tips2trades, said, "A strong uptick in India's credit cycle has fuelled an excellent rally in Nifty Bank, including YES Bank stock hitting a 52-week high recently. Investors should book profits at current levels as stock is overbought and wait for lower levels of Rs 16.4-17 to buy for higher targets of Rs 25-27.5 in the near term."