Yes Bank shares fell as much as 4.3% to Rs. 98.75 on BSE today, extending their bear run after credit agency Moody’s put the company under review for a downgrade. This is the first time in five years that Yes Bank share prices are down to double digits.
UBS Group AG recently cut Yes Bank’s price target on concerns over its relatively high exposure to lower-rated companies. The bank was among lenders most-exposed to a few large companies with stressed debt.
In April, the bank had classified about Rs. 10,000 crore of its exposures, representing 4.1% of its total loans, under its stressed assets, watch list. The rating agency says this could translate into non-performing loans over the next 12 months.
Yes Bank plans to raise $1.2 billion over 18 months to bolster its capital buffer through a mix of public and private share sales.
Read EquityPandit’s Nifty Bank Outlook for the Week
At 10 am, Yes Bank shares were off from early lows and were trading flat at Rs. 103.