Yes Bank Shares Rise, While Most Banks Slide On RBI's LoU Diktat

The shares of Yes Bank rose jumped to a high of Rs 317.8

Yes Bank shares rise on Wednesday despite all other banks posting heavy losses on RBI banning the practice of letters of undertaking (LOU) a day before. On Tuesday, the central bank had banned the practice of issuing letters of undertaking (LOUs) by lenders to prevent the recurrence of PNB like frauds that is given an valuation of around Rs 13,000 crore involving Nirav Modi and Mehul Choksi .

The shares of Yes Bank rose on Wednesday and jumped to a high of Rs 317.8 against the previous session closing of Rs 313.10. The scrip opened at Rs 313 on Wednesday and jumped to Rs 317.80 on BSE. On NSE also, the scrip rose to Rs 317.90, 1.53% higher than the previous session’s closing.

Also  Read: Sensex Falls Over 200 Points, Nifty Near 10,350: 10 Points

It is noteworthy that Yes Bank posts maximum gains among Sensex stocks on a day when the market index is trading over 220 points lower, nearly 0.70% down.

The 52-week high for Yes Bank shares is Rs 383 achieved on September 21, 2017, while the 52-week low is Rs 275 achieved on May 23 last year.

Yes Bank shares rose on account of bank acquiring 8.9 crore Fortis shares after the promoters failed to pay the loans. In a stock market filing on Tuesday, Yes Bank wrote, “We would like to inform you that Yes Bank has acquired 89,781,906 equity shares, constituting 17.31% of the paid up capital, having nominal value of Rs 10 per share of Fortis Healthcare, pursuant to invocation of pledge on the said equity shares subsequent to default by promoters group companies in the credit facility provided by the bank.”.

Besides Yes Bank, other gainers among Sensex stocks are Maruti, Power Grid, Hindustan Unilever, Asian Paints and NTPC, as they trade up 0.50% higher. Among the Sensex losers are Hero MotoCorp, ICICI Bank, Adani Ports and SBI that are trading between 1.5% to 2%.