YES Bank jumps 4% as lender raises Rs 3,500 crore via CDs

NEW DELHI: Shares of YES Bank jumped over 6 per cent in Wednesday's trade after the private lender raised Rs 3,500 crore through certificates of deposit for the second time in less than three working days.

Two large state-run banks are said to have subscribed to these money market instruments with nearly six-month maturity, ET reported.

The lender, which is undergoing a restructuring, likely offered 8.25 per cent to investors, missing the benefits of softer interest rates in the past few days amid sloshing cash in the system.


YES Bank did not immediately reply to ET’s email seeking comment.

CD rates have fallen up to 275 basis points since Friday, after the Reserve Bank of India announced a liquidity injection of Rs 3.74 lakh crore into the system in an unscheduled bi-monthly policy announcement.

YES Bank raised Rs 3,700 crore collectively on Thursday and Friday via CDs that offered the same rate.

In another development, Sebi imposed a penalty of Rs 50 lakh each on two promoter entities of YES Bank for not making requisite disclosures pertaining to encumbrance of shares.

The shares of the lender closed 6.68 per cent higher at Rs 23.95 on BSE.