Rana Kapoor-founded Yes Bank’s stock a few months ago had seen a continuous drop in value. But after the financial results for FY 2019-2020 was announced the bank saw a rise in shares — proving that the investors continue to keep a close watch over this stock.
While the stock reached an intraday high of Rs 31.6, its low was Rs 25.8 per piece.
Looks like the investors are not really bothered by the fact that the bank had written off additional tier-1 bonds of Rs 8,415 crore. The private lender reported Rs 2,729 crore net profit for the quarter ended March as compared to Rs 1,507 crore loss in the same quarter of FY 2018-2019.
The bank’s gross non-performing assets (NPAs) increased to 16.80 per cent from 3.22 per cent a year ago. The net interest income of the bank stood at Rs 1,274 crore while non-interest income stood at Rs 597 crore, witnessing a growth of 12 per cent.
In March 2020, the Reserve Bank of India superseded the board of Yes Bank and put it under moratorium. Within a few weeks, the moratorium was lifted. Post that, Prashant Kumar was appointed the new MD and CEO of the bank and new board was appointed.
To save Yes Bank from failing public and private sector banks namely State Bank of India, Housing Development Finance Corporation, Axis Bank, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank come together and offered to invest Rs 10,000 crore. SBI is the major investor in the bank with an investment of Rs 7,250 crore.
