(IANS) Stocks of the crisis-hit Yes Bank have surged over 60 per cent, a day after Moody’s upgraded its outlook for the bank and the Reserve Bank Governor assured that the bank’s revival plan is credible bank and it may infuse more liquidity if required.
At 11 a.m., shares of Yes Bank were trading at Rs 60.65 per share, higher by Rs 23.55 or 63.48 per cent from its previous close.
Global rating agency Moody’s on Monday upgraded Yes Bank’s ratings and changed the lender’s outlook to positive.
Moody’s Investors Service upgraded the bank’s long-term foreign currency issuer and foreign currency senior unsecured MTN programme ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively, among other upgrades.
Further, speaking to the media on Monday, Reserve Bank of India (RBI) Governor Shaktikanta Das sought to assure the private bank’s depositors that their hard-earned money is safe as the reconstruction scheme for Yes Bank as credible and sustainable.
He also said that the central bank will infuse additional liquidity into the private lender, if required, and urged depositors that there was no need to carry out panic withdrawals after the moratorium on the bank ends on Wednesday (March 18).
A total of seven private banks along with the State Bank of India have so far committed investments into the bank.
Investment by private banks has so far reached Rs 3,950 crore. Among the private players, ICICI Bank and Housing Development Finance Corporation committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank committed to invest Rs 600 crore and Rs 500 crore, respectively.
Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.
Further, SBI which would hold 49 per cent stake in the cash-strapped lender has been allotted 605 crore shares for Rs 6,050 crore.
The private sector bank had been put under a moratorium by the Reserve Bank of India since March 5 which has restricted deposit withdrawals up to Rs 50,000 per month. Under the terms of the notified scheme, this moratorium will now be lifted at 6 p.m. on March 18 and the bank will full-fledged operations thereon.
Market recovers, Sensex gains 600 points
In a largely volatile trading session so far, the key Indian equity indices on Tuesday recovered from their early losses to trade in the green.
The BSE Sensex rose over 600 points, and the Nifty50 on the National Stock Exchange also gained to trade above the 9,300 mark.
At 10.32 a.m., the Sensex was trading at 31,996.65, higher by 606.58 or 1.93 per cent from the previous close of 31,390.07.
It had opened at 31,611.57 and touched an intra-day high of 32,011.28 and a low of 30,745.19 points.
The Nifty50 was trading at 9,335.20, higher by 137.80 points or 1.50 per cent from its previous close.
Buying was witnessed across sectors on Tuesday, after the Indian stocks recorded its second biggest single day fall as Sensex fell over 2,700 points on Monday.