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Private sector lender Yes Bank Ltd 's shares fell over 5 per cent on Monday following a downgrade of its long-term ratings by ICRA.
The bank’s scrip fell 5.3 per cent to close at ₹166.3 apiece on the BSE.
Its market capitalisation fell to ₹38,515.71 crore — below that of Bank of Baroda (₹39,719 crore) and Punjab National Bank (₹39,732.93 crore). The bank has moved down to the 10th position now from the seventh earlier.
On Friday, rating agency ICRA downgraded the lender’s long-term ratings along with a negative outlook. In all, it downgraded the ratings on instruments totalling borrowings of over ₹33,000 crore by the lender.
“In its earnings for the fourth quarter of 2018-19, the bank reported a significant increase in BB and below rated advances, given the deterioration in the credit profile of some of its larger borrowers,” ICRA had said, adding that the downgrade also factored in the further weakening in the lender’s core equity (CET-I) capital cushions because of the voluntary provisions and consequent losses in the fourth quarter.
YES Bank declared its maiden net loss of ₹1,507 crore for the January to March 2019 quarter on April 26. Following the results, the bank’s scrip had plunged by nearly 30 per cent to close at ₹168 apiece on the BSE on April 30.
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