Comments
Yes Bank Ltd's shares surged 30 per cent early on Thursday in their sharpest ever intra-day jump, a day after the Reserv Bank of India (RBI) cleared the private sector lender of any divergences in bad loan reporting practices.
More than 101 million shares changed hands by 0418 GMT, double the 30-day average trading volume, and making them the most heavily traded on the National Stock Exchange (NSE).
The central bank did not find any divergences in the asset classification and provisioning by Yes Bank for the fiscal year ending 2018, the bank said.
This came as a relief for Yes Bank, which reeled under pressure last year to bring in a new chief executive officer (CEO) amid an increasingly assertive approach by the RBI to tackle domestic banks' bad debts.
Yes Bank hired Ravneet Gill as its new CEO after the RBI denied Rana Kapoor an extension to his term twice last year without giving a reason.
Key overhang removed
Citi analysts said the positive report can support a more rapid return to market than otherwise would have been possible. They adding this would be one of the key priorities for Gill.
“We believe it is time for the RBI to increase transparency on decisions that have a significant impact on minority shareholders,” Jefferies analysts said.
Yes Bank's shares were last up 20.1 per cent in a broader Mumbai market that was down 0.25 per cent.
Comments
COMMENT NOW
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.