Shares of Yes Bank rallied close to 10% on April 1, 2020 after the private bank raised capital to the tune of Rs. 3500 crore for the second time in less than 3 working days via certificate of deposits (CDs).
As per an Economic Times report, two leading state run lenders are known to have subscribed to these CDs with maturity of nearly six-months.
On the CDs, the private bank likely provided 8.25% rate to investors even as the interest rates in the economy have softened in the last few days.
In aggregate the lender raised Rs. 3700 crore via CDs on Thursday and Friday that were available at the same rate.
Since Friday, after the Reserve Bank of India announced an emergency rate cut and infused liquidity of Rs. 3.74 lakh crore into the financial system, interest rate on certificate of deposits have declined up to 275 bps. 1 bps is one-hundredth of a percentage point.
Shares of Yes Bank last quoted up by 4.9% or Rs. 1.10 at Rs. 23.55 per share on the BSE.