Yes Bank shares tank over 30 per cent

Mumbai: The Yes Bank stock fell more than 30 per cent, as investors dumped the shares, reacting to the surprise fourth quarter loss of Rs 1,506 crore and much higher-than-expected NPA recognition, which led to most brokerages downgrading the stock.

The crashed stock eroded Yes Bank's market capitalisation by Rs 16,049.40 crore to Rs 38,909.44 crore from Rs 54,958.84 crore last Friday. Yes Bank had reported its fourth quarter performance after the market hours on Friday and the market was closed on Monday.

As the market opened after an extended weekend, Yes Bank shares nosedived over 30 per cent and touched a low of Rs 165.30 before finally closing 29.23 per cent down at Rs 168 on the BSE.

The massive fall in value brought the Yes Bank stock to the same level it traded just before the bank announced on February 13, 2019 that the RBI had cleared it of any divergences in bad loan reporting practices. Then, reacting to the positive development, the shares had rallied 30 per cent next day, though later RBI had pulled up the private lender for making public its confidential report.

Rating agency Moody's Investors Service on Tuesday warned of a longer painful period for the bank, saying, "Yes Bank has an overall stressed advance of 8 per cent and new chief executive Ravneet Gill's clean-up will keep profit under pressure for up to the next 18 months.”