Shares of Yes Bank rose more than 3 percent in early trading on August 19. After a private sector lender said it had repaid Rs 35,000 crore to the Reserve Bank of India.
Of the total Rs 50,000 crore drawn for provisional support. The bank has repaid Rs 35,000 crore of the total special liquidity facility (SLF) to the central bank. Chairman Sunil Mehta said in its 2019-20 annual report.
Chairman, Sunil Mehta
“In addition to the SLF of Rs 50,000 crore extended by RBI. The bank has since then received strong customer liquidity inflows. I am pleased to report that the bank has, as of date, repaid Rs 35,000 crore of SLF. The balance will be repaid within the timelines set by RBI,” Mehta said.
The stock, which has gained over 30 percent in the last 15 days. It was trading at Rs 15.60, up to Rs 0.57, or 3.79 percent. It has touched an intraday high of Rs 15.69 and an intraday low of Rs 15.34.
“Yes Bank has made significant progress. The bank successfully raised equity funding of Rs 15,000 crore through a follow‑on public offering (FPO). Within four months of the restructuring scheme, amid challenging market conditions. Towards the end of July,” Mehta said. This will add to the strong confidence of institutional and retail investors in the Bank’s restructuring plan. The action is to take future roadmap and professional leadership.
Following this capital increase, the bank’s Common Equity Tier (CET) 1 ratio has doubled to 13.4 percent from 6.6 percent at the end of June, bringing its capitalization largely in line with the private sector peers, Mehta said.
“The significantly improved solvency ratio strengthens the bank’s resilience to potential asset quality risks, resulting from the impact of the economic slowdown and COVID-19 related disruptions on India’s economy,” Mehta said.
Going forward, Mehta said in the report that the board of directors recognized the need to strengthen oversight along with governance and risk management practices.