MUMBAI: Shares of YES Bank rose 32.97% on Thursday to close at Rs. 42.55 after the management allayed concerns over the bank's financial health, dealers said.
The stock marked its biggest single day gain on Thursday after hitting a multi-year low on October 1 on the back of the forced sale of pledged shares by large shareholders.
Promoter and co-founder of the bank, Rana Kapoor and his group entities have sold 2.16 percent stake in the lender, which has brought down their stake in the bank to 4.72 percent.
In a BSE filing, 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 bank had a liquidity coverage ratio in excess of 125 percent as of September 30, which is well above the minimum regulatory requirement of 100 percent, Yes Bank said in a release. Its gross advances aggregated to Rs 2.32 lakh crore at September-end with a higher share of retail advances as compared to June 30.
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.