YES Bank shares zoom 29% in afternoon trade

MUMBAI: Shares of YES Bank rose 29% today after the management allayed concerns over the bank's financial health, dealers said.

At 1259 IST, shares of the bank were up 24.5% at 39.85 rupees on the National Stock Exchange.

The shares can rise up to 54-60 rupees per share, if the stock crosses the 44-rupee mark, according to a technical analyst at a domestic brokerage.

YES Bank, on Wednesday, said that the near 23% fall in the bank's shares on Tuesday was on account of sale of 100 mln shares or 3.92% stake in the bank held by a "large stakeholder". Earlier, analysts had indicated that renewed concerns over the bank's asset quality had also weighed on shares.

Allaying these fears, the bank's management today said that the fall in share price is not a measure of the bank's health.

The bank also said that the trend in loan growth is positive with a large chunk being retail loans, and that no incremental stress is expected. The management also said that it is confident of recovering most stressed loans on its book.

The fall in share price was also seen as impediment to the proposed capital raising by the bank.

YES Bank Managing Director and Chief Executive Officer Ravneet Gill today said that even if raising capital comes at the cost of larger stake dilution, the bank will be open to it and is constantly engaged with investors, including private equity funds and family offices, to raise capital.

The bank had raised 19.3 bln rupees through a qualified institutional placement in August.

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