Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel https://t.me/InvestmentGuruIndia
Download Telegram App before Joining the Channel
MUMBAI: Shares of Yes Bank slumped nearly 30% to touch a 52-week low of ₹25.80 on Friday after the Reserve Bank of India (RBI) imposed a moratorium on the capital-starved bank.
The central bank has also capped withdrawals from the bank at ₹50,000 per account till further orders.
The decisions were notified late on Thursday as the central bank tries to stitch together a bailout plan for the troubled lender that was once the country’s fourth largest bank by assets.
A moratorium usually concludes with the target bank—Yes Bank, in this case—being merged with another bank.
RBI also said that it has superseded the board of the private sector lender because of a serious deterioration in its financial position.
In a late night notification, the board of State bank of India gave an in-principle nod for exploring investment in Yes Bank.
The stock had rallied nearly 26% on Thursday following reports of capital infusion by a consortium of banks led by State Bank of India.
In the year so far, the Yes Bank stock has declined over 41.2% and in March alone it has declined 20.2%.
Currently, the stock has 6 buy ratings, 13 hold ratings and 20 sell ratings by analysts on Bloomberg.
Meanwhile, Moody’s Investors Service has said the RBI's moratorium is credit negative for Yes Bank as it affects the timely repayment of bank depositors and creditors.