Yes Bank’s shares slumped nearly 30 per cent touch a 52 week low of Rs 25.80 after Reserve Bank of India (RBI) imposed a moratorium on the capital-starved bank and also a capped withdrawal from the bank at Rs 50,000 per account. Generally, a moratorium concludes with the target bank such as Yes Bank, if in case the bank merged with another bank. It has superseded the board of the private sector lender because of a serious deterioration in its financial position, RBI said.
According to the notification, the board of State bank of India gave an in-principle nod for exploring investment in Yes Bank. The stock had rallied nearly 26 per cent following reports of capital infusion by a consortium of banks led by State Bank of India.
In the year so far, the Yes Bank stock has declined over 41.2 per cent and in March alone it has declined 20.2 per cent. Currently, the stock has 6 buy ratings, 13 hold ratings and 20 sell ratings by analysts on Bloomberg. Meanwhile, Moody’s Investors Service has said the RBI’s moratorium is credit negative for Yes Bank as it affects the timely repayment of bank depositors and creditors.
Read EquityPandit’s Nifty Bank Outlook for the Week