For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Yes Bank Slumps Close To 7% Over CG Power Woes

|

Shares of Yes Bank crashed after CG Power's risk and audit committee reported of unauthorised transactions carried out by "certain employees" of the company. After 13 hours of discussion, the committee in the early hours on Tuesday also said that the transactions have led to the understatement of not only the company's liabilities but also its advances made to parties (both related and unrelated) of the company and group.

Yes Bank Slumps Close To 7% Over CG Power Woes
 

Yes Bank, which holds 12.79 percent stake in CG Power, saw its share prices reacting to the news with a fall of close to 7 percent to an intraday low of Rs 71 apiece on NSE. Shares of CG Power and Industrial Solutions Ltd tanked close to 20 percent to its 52-week low of Rs 14.80 each.

LIC holds 2.25 percent stake in CG Power as of June 2019.

The exchange filing post the meeting also revealed that "certain assets of the Company that were purportedly provided as collateral without due authority; and the Company was made a co-borrower and/or guarantor for enabling ostensibly unrelated third parties to obtain loans without due authorisation."

The highly volatile shares of Yes Bank had only recently recovered after the conclusion of its Rs 1,980 crore qualified institutional placement (QIP) last week, which was oversubscribed three times. The QIP will take the private bank's common equity tier-1 capital ratio from 8 percent to 8.6 percent.

The lender has been looking to raise funds to replenish its capital which was hurt by mounting bad loans and an increase in provisions. The QIP will help the bank maintain minimum capital requirements under Basel III norms, experts say, but there is a requirement of further capital growth.

The stock has fallen 60 percent so far in 2019.

Read more about: yes bank
Story first published: Tuesday, August 20, 2019, 13:48 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more