Wednesday, August 19, 2020

Yes Bank share price gains after repaying Rs 35,000 crore to RBI

Yes Bank share price gained more than 3 percent in the morning trade on August 19 after the private sector lender said it had repaid Rs 35,000 crore to the Reserve Bank of India.

The bank repaid Rs 35,000 crore to the central bank out of the total special liquidity facility (SLF) of Rs 50,000 crore drawn for interim support, Chairman Sunil Mehta said in the bank’s 2019-20 annual report.

“In addition to the SLF of Rs 50,000 crore extended by RBI, the bank has since then received strong customer liquidity inflows. I am pleased to report that the bank has, as of date, repaid Rs 35,000 crore of SLF. The balance will be repaid within the timelines set by RBI,” Mehta said.

The stock, which has gained over 30 percent in the last 15 days, was trading at Rs 15.60, up Rs 0.57, or 3.79 percent. It has touched an intraday high of Rs 15.69 and an intraday low of Rs 15.34.

“Yes Bank has made significant progress. The bank successfully raised equity funding of Rs 15,000 crore through a follow‑on public offering (FPO) within four months of the restructuring scheme, amid challenging market conditions, towards the end of July,” Mehta said, adding this demonstrates the strong confidence of institutional and retail investors in the bank’s restructuring plan, action taken, future roadmap and professional leadership.

Following this capital increase, the bank’s Common Equity Tier (CET) 1 ratio has doubled to 13.4 percent from 6.6 percent at the end of June, bringing its capitalisation largely in line with the private sector peers, Mehta said.

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