Yes Bank shares trim early gains, close over 4 pc higher

Shares of Yes Bank on Wednesday trimmed most of the sharp early gains and closed the day over 4 percent higher, mainly due to profit-booking in a weak broader market. The scrip, which had jumped 49.95 percent to Rs 87.95 during the day on the BSE, gave up most of the gains later and closed at Rs 60.80, up 3.67 percent.

On the NSE, it rose 4.18 percent to Rs 61.10. The scrip has risen a whopping 142 percent in four days.

The bank's shares had jumped over 59 percent on Tuesday after Moody's upgraded the company's ratings. Announcement of a restructuring plan for the bank has triggered the rally in the scrip.

State Bank of India (SBI) Chairman Rajnish Kumar on Tuesday said the country's largest lender, which owns close to 43 percent stake in Yes Bank now, will not sell a single share before the mandated three-year lock-in period, and that he's, in fact, keen to approach the board for hiking the holding to 49 percent. Under the RBI and government-driven rescue of the fourth largest private lender, SBI was initially asked to take up to 49 percent stake by investing Rs 7,250 crore into the equity capital of Yes Bank.

However, as seven other lenders came on board, it could pick up only around 43 percent stake, or 60.50 crore shares, for Rs 6,050 crore. Explaining the rationale for the lower stake, the chairman said: "since investor interest was overwhelming, which met the current capital requirement, we chose to pick up only so much in the first round of fundraising." "I am keen to move my board to seek permission to increase the stake to the maximum permissible 49 percent and that it's my commitment that SBI will not sell a single share before the three-year lock-in. This is despite the regulatory and government permission to pare down our equity to 26 percent by after three years. And I don't see my board saying no to the proposal as well," Kumar said.

The moratorium on Yes Bank would be lifted by 6 pm on March 18(Wednesday), as per the reconstruction scheme notified by the government on Friday. Yes, Bank CEO-designate Prashant Kumar on Tuesday said there are no worries on the liquidity front and that complete operational normalcy would be restored from 6 pm on Wednesday.