Shares of Yes Bank fell nearly 3 per cent on Thursday after India Ratings downgraded the lender’s long and short-term issuer ratings.
The stock was trading 2.99 per cent down to Rs 45.35 on the Bombay Stock Exchange (BSE) and the Natioanl Stock Exchange (NSE).
India Ratings and Research (Ind-Ra) backed the downgrade saying the private sector lender failed to meet the expectations with respect to equity infusions.
According to the rating agency, the liquidity position of the bank seemed adequate at end-September 2019.
In the absence of improvements on the capital side, the ability of the bank to manage its asset and liability maturities might be tested further, it said.
“The downgrade reflects the inadequate progress as per Ind-Ra’s expectations with respect to the quantum and pace of equity infusions, which is critical for providing sufficient cushion for the credit cost impact of the stressed asset pool,” India Ratings and Research said on Wednesday.
The bank is likely to face balance sheet expansion challenges over the short-to-medium term, it added.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.