Yes Bank: The top loser of the year
With the benchmark indices witnessing another session of heavy sell-off, Yes Bank was the biggest loser on Tuesday. Shares of Yes Bank hit a fresh 52-week low of Rs. 72.85 and closed at Rs. 73.60 per share, down by 10.35 per cent on BSE.
The investors have neglected the recent steps taken by the private lender to bring structural changes. Yes Bank had announced major rejig in its management team as it appointed Anurag Adlakha (Yes Bank’s Senior Group President and Head of Financial Management and Strategy) as its Group Chief Financial Officer, last week.
The stock has continued to hit lows even after the private sector lender successfully raised US$275 million in the qualified institutional placement (QIP) issue last week. The stock tumbled around 7 per cent on Friday after the bank closed the QIP issue.
Yes Bank shares have been under huge selling pressure ever since the private lender shocked the market by reporting a loss of Rs. 1,506.64 crore for the quarter ended March 31 2019 on account of higher provisions and contingencies. Surprisingly, provisions jumped to Rs. 3,661.70 crore from Rs. 399.64 crore in the year-ago period. The stock crashed 30 per cent on 30 April to Rs. 167 and since then the stock has kept heading southwards as major brokerages cut its target price.
Investors’ sentiments were further dampened after the private bank reported another quarter of weak financial results. Yes Bank’s net profit dropped by 90.97 per cent to Rs. 113.76 crore for the April-June quarter on account of lower income and higher provisioning. Moreover, the non-performing assets (NPAs) of Yes Bank disappointed the market. Gross NPAs were at 5.01 per cent in the June quarter compared with 3.22 per cent in the March quarter and 1.31 per cent in the year-ago June quarter. Shares of Yes Bank crashed 20 per cent to hit a five-week low at Rs. 79.15 on July 18.
Over last one year, Yes Bank stock has dropped by 80.79 per cent, which is the largest loss posted by any stock listed on Nifty50 over the period. The stock had hit 52-week high at Rs. 404.00 per share on August 28, 2018.