YES Bank share price hits 5% upper circuit, here's why
YES Bank share price hit the upper circuit of 5% in afternoon session today after the private sector lender said country's largest insurer LIC bought 105.98 crore shares of the bank (equivalent to 4.23% stake) through open market deal. After the deal, LIC's stake in private lender has risen to 4.989% from previous 0.759% in YES Bank.
Share price of YES Bank was trading 5% higher at Rs 12.83 against previous close of Rs 12.22 on BSE. The stock has gained 7.36% in last 3 days.
The large cap share trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The share has lost 84.18% in one year and fallen 72.67% since the beginning of this year.
In afternoon session, there were only buyers and no sellers for the stock on BSE. Total 319.70 lakh shares changed hands amounting to turnover of Rs 40.76 crore. Market cap of YES Bank rose to Rs 32,145 crore.
The share hit 52 week high of Rs 92.40 on August 9 , 2019 and 52 week low of Rs 5.65 on March 6, 2020.
On August 3, Moody's Investors Service said it upgraded YES Bank's long-term foreign currency issuer rating by a notch to 'B3' from 'Caa1' after a Rs 15,000-crore capital raising. Despite the upgrade, YES Bank still remains under non-investment grade, the global ratings agency said.
Obligations rated 'B' are considered speculative and are subject to high credit risk, while those rated 'Caa' are judged to be speculative of poor standing and are subject to very high credit risk. The outlook on Yes Bank's ratings where applicable is changed to stable from positive, Moody's said.
Buoyed by the ratings upgrade, YES Bank share gained 3.58% intra day to Rs 12.41 on August 4.
In July end, YES Bank reported a 60% fall in its standalone net profit to Rs 45.44 crore for the first quarter ended June 30 against net profit of Rs 113.76 crore a year earlier.
Total standalone income for the quarter fell 32.8% to ?6,106.74 crore, from Rs 9,088.80 crore in the same period of 2019-20.
Net interest income (NII), the difference between interest earned and interest expended, fell by 16.35 per cent to Rs 1,908 crore compared to Rs 2,281 crore in Q1FY20. Net interest margin was up by 20 basis points YoY to 3 per cent.