Yes Bank stock further cracks 23 pc; logs 5th consecutive session of fall

Shares of Yes Bank went into a tailspin on Tuesday despite a positive opening, tumbling nearly 23 percent, amid worries overstress in the financial system. The scrip came under massive selling pressure in afternoon trade, giving up its early gains and plunged 29.91 percent to Rs 29.05 -- its multi-year low -- during the day on the BSE. It later, closed at Rs 32, down 22.80 percent.

At the NSE, it cracked 22.22 percent to close at Rs 32.20. "The Indian equity indices witnessed sharp fall today following heavy selling in banking stocks due to rising fears of their exposure to troubled real estate/housing finance companies," Ajit Mishra, Vice President, Research, Religare Broking said.

It was the biggest loser on both the Sensex and Nifty. This is the fifth consecutive session of fall for Yes Bank when it tanked nearly 43 percent. During the five days of fall, the company's market valuation eroded by Rs 4,828.94 crore.

Yes Bank promoter Rana Kapoor and his group entities have sold 2.16 percent stake in the lender, according to a regulatory filing. The stake sale was done through an open market transaction on September 26-27, it said.

After this, Kapoor and his group entities' stake has now come down to 4.72 percent in the bank. Shares of Yes Bank on Monday tumbled 15 percent amid concerns over its exposure to Indiabulls Housing Finance.

Yes Bank in a statement on Monday said recent market rumors and reports appear to have generated a lot of speculation around the private sector lender. "We strongly refute them as being speculative, unsubstantiated, and irresponsible," Ravneet Gill, MD, and CEO, Yes Bank said on Monday.

Meanwhile, another lender, RBL Bank also witnessed huge selling and plunged 8.71 percent to close at Rs 300.10 on the BSE. During the trade, it dropped 22.25 percent to Rs 255.60 -- its 52-week low. "With a big crack in IB Housing yesterday (Monday), there are lots of rumors floating in the market about further stress in the financial system. The issues in Altico and PMC Bank also are adding fuel to these rumors. In such an environment, it is easy for bears to create panic," VK Vijaykumar, Chief Investment Strategist, Geojit Financial Services commented on sharp fall in Yes Bank and RBL Bank.

The BSE benchmark Sensex crashed over 737 points to 37,929.89 during the day as investors weighed deepening woes in the financial sector. It later recovered most of the losses and closed at 38,305.41, 361.92 points lower.