Capital-starved Yes Bank tanks 85 per cent

Capital-starved Yes Bank has tumbled more than 85 per cent on the bourses today as the country's central bank has imposed a moratorium on the bank and capped withdrawals at Rs 50,000 per account till April 3, 2020. The board of Yes Bank has also been superseded with immediate effect.

Earlier on Thursday, the Exchange sought clarification from SBI and Yes Bank as media reports suggested that the government is set to have an approved SBI's and LIC's plan to buy a stake in Yes Bank. In reply to this clarification, SBI responded that the matter in this regard was discussed in its central board meeting held on March 5, 2020 and an in-principal approval has been given by the board to explore investment opportunity in the bank.  

Yes Bank has been grappling with swelling bad loans as well as delayed its result for December 2019 ended-quarter. As on quarter ended September 2019, the bank had GNPA of Rs 17,134.4 crore (7.39 per cent) while, NNPA was at Rs 9,757.2 crore (4.35 per cent). The bank had an exposure of almost Rs 31,430 crore for 'BB' and below corporate rating, which excludes NPA. Besides, it has Rs 6,000 crore exposures to real estate and Rs 4,000 crore to Vodafone. Therefore, we believe that the NPA situation at present is much worse than September 2019.

On Thursday, in response to this media report, the stock of Yes Bank had surged more than 25 per cent. While the stock of SBI on Thursday and today, felt the hit and was trading in negative terrain