Yes Bank shares bounce back, close nearly 4 pc higher

Yes Bank shares on Friday rebounded and closed nearly 4 percent higher after one of the promoter entities of the company sold a part of its stake. The scrip, however, trimmed most of its early gains and closed at Rs 55.45, up 2.40 percent on the BSE. During the day, it zoomed 10.61 percent to Rs 59.90.

On the NSE, it climbed 3.69 percent to close at Rs 56.10. In terms of the traded volume, 259.92 lakh shares were traded on the BSE and over 39 crore units on the NSE during the day.

Morgan Credits Private Limited (MCPL), a promoter group firm of Yes Bank, on Thursday, said it has sold 2.3 percent shareholding in the private sector lender. "The proceeds will be solely utilized to prepay a substantial portion of outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM)," the company said in a regulatory filing.

Morgan Credits in April 2018 had placed rated, zero-coupon, NCDs amounting Rs 1,160 crore with RNAM (the only borrowing of MCPL), it said. Meanwhile, in a filing to the BSE on Friday morning, the company said as has been publicly disclosed, one of the promoter entities of Yes Bank sold a part of its stake yesterday (Thursday). This sale was effected purely to deleverage the debt of this entity.

"The board of directors of Yes Bank would like to state that the financial position of the bank is sound and stable, its operating performance continues to be robust and its growth plans stay firmly on track," it added. Shares of Yes Bank on Thursday plummeted nearly 16 percent after a Moody's report said the Altico default may be credit negative for banks given their significant exposure to the real estate sector.