Yes Bank Share Price: In view of the better economic outlook, the shares of the private sector giant Yes Bank showed a substantial rise today. Its shares on BSE closed at Rs 16.10, an increase of about 4 percent today. By the end of this month, JC Flowers may have completed the sale of stressed assets of Yes Bank.
Bank CEO Prashant Kumar said on Thursday, 3 November, that bad loans worth Rs 48,000 crore will be transferred to Asset Reconstruction Company (ARC) this month. The CEO of the bank says that the bank is growing well on the path of growth and in terms of liabilities, its growth rate is better than the industries. According to Prashant, the cost of deposits may increase but it will not affect margins as loan rates will also go up.
The positive effect of this announcement on Yes Bank shares
The impact of exposure to loan transfer information on the shares of Yes Bank. The confidence of investors increased and they bought heavily. Its shares reached a high of Rs 16.30 on the BSE in yesterday's trading session. However, till the end of the day, there was a softening in the Yes Bank Share Price. It closed at Rs 16.10. Its market cap is Rs 40,340.31 crore.
How will the transfer of loans affect the situation?
The loan book of Yes Bank contains a stressed debt of Rs 48,000 crore disbursed by the previous management led by its co-founder Rana Kapoor. ARC will now handle the transfer. The bank will be able to reduce its gross non-performing loan ratio to less than 2 percent after transferring the loan from above 12.89 percent to less than 2 percent following the transfer of the loan.
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