YES Bank rises 4%; lender says efforts being made to strengthen bank

NEW DELHI: Shares of YES Bank rose 4 per cent in Wednesday’s trade as the bank informed stock exchanges that efforts were being made to financial strengthen the bank and that the lenders' capital adequacy ratio is comfortably above the regulatory requirement.

The bank said that there have been some 'unsubstantiated and irresponsible' press or social media speculation about the bank. The press note was made to ally investors' concerns over liquidity and stability of the lender.

In another regulatory filing, it said it has acquired 127,321,500 equity shares or 29.97 per cent of the shares of Rosa Power Supply Company Limited, a wholly-owned subsidiary of Reliance Power Limited.


As per the filing, Rosa Power Supply Company operates Rosa Thermal plant (1,200 MW) at Shahjahanpur in Uttar Pradesh. It generated 4,341 million units for the year ended March 31, 2019, with a turnover at Rs 2,414 crore.

YES Bank has been battling liquidity issues and an accumulation of toxic assets in its kitty. The lender is in the process of raising capital from strategic investors.

The board of the bank approved raising up to Rs 10,000 crore in one or more tranches on January 10. The private sector lender said it would not proceed with the offer made by Erwin Singh Braich/SPGP Holdings.

Investor sentiment was hit further on Friday when an independent member of the board and head of the bank's audit committee, Uttam Prakash Agarwal, resigned. The lender later said it was reviewing the 'fit and proper' status of Agarwal, as directed by the Reserve Bank of India.

The stock has tanked 80 per cent in the last one year. The shares of the lender closed 3.24 per cent higher at Rs 39.80 on BSE.