Shares in Yes Bank, two days ago jumped 10% on fund raising plans and then fell again on Wednesday by 4%. In trading on Thursday the shares were again up 1%. The shares of Yes Bank today were trading at Rs 14.40. Yes Bank stock over the last few weeks have been under pressure as losses showed no signs of slowing.
Financials remain poor
The bank had reported a net loss of Rs 3,787.75 crore for the quarter ending March 31, 2021. Gross non performing assets at the bank as on March 31, 2021 stood at a staggering 15.41%. Several prominent investors in the bank have cut their holdings. Axis Bank and a few foreign portfolio investors have reduced their holdings. The board of Yes Bank is meeting today to consider various fund raising plans.
Earlier, it had raised money by qualified institutional placement and the bank would continue to need to raise money. In fact, the equity capital has also been rising on account of these fund raising plans.
Shares of Yes Bank to remain volatile
Many analysts had suggested to sell the shares of Yes Bank. The stock, however, continues to remain a traders delight.
There have been a few positives for Yes Bank over the last few quarters and one of them is that its deposits continue to grow very strongly. The deposit franchise at Yes Bank for FY 2021 grew 55% over FY20 to Rs 1.63 lakh crores. The bank also managed to successfully raise about Rs 15,000 crores through a follow on public offering in order to recapitalize the bank
The recovery of bad loans also was pretty strong during FY 2021 at Rs 4,933 crores. There have been a few positives as far as the bank is concerned, but, the road would remain a hard and long one. The stock is a trader's delight, for investors there might be just come other stocks to buy at the moment.
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