Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Analysts said the move will be credit negative for Yes Bank. File Photo - Bloomberg
Shares of YES Bank came under massive selling pressure as the session progressed on Friday and plunged nearly 85 per cent after the cash-strapped lender was placed under a 30-day moratorium.
The YES Bank scrop settled at Rs 16.20 on the BSE, down 56 per cent. Earlier, the scrip sank 84.93 per cent to Rs 5.55 -- its 52-week low -- as investors deserted the counter.
On the NSE the scrip settled at Rs 16.20, down 56 per cent. Earlier in the session, it plummeted 84.64 per cent to Rs 5.65 -- its one-year low.
The company’s market valuation also dropped Rs 5,432.02 crore to Rs 3,927.73 crore on the BSE.
The entire banking pack came crashing down, with RBL Bank trading 13 per cent lower, followed by IndusInd Bank which dropped 7 per cent, SBI 6.5 per cent and Axis Bank 3.55 per cent on the BSE.
The BSE bankex was trading lower by nearly 3 per cent in afternoon trade.
The broader market was also hit hard, with the BSE benchmark Sensex tanking over 1,000 points.
“The YES Bank fiasco has come as an out-of-syllabus question for the market amid ongoing worries of coronavirus,” said Santosh Meenas, Senior Analyst, TradingBells.
The market took this event very negatively because it raises a question on the stability of the overall Indian financial system, he said, adding that the market is facing a double-whammy situation where the global markets are struggling on the back of coronavirus worries and Yes Bank fiasco is a setback event on the domestic level.
YES Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
The announcement came late Thursday evening.
The bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.
Shares of YES Bank had zoomed 27 per cent on Thursday on reports of the bail-out.
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