Shares of YES Bank declined 2 per cent in Wednesday’s trade to slip below the Rs 21 level amid a media report, which said NCLT has rejected its claim worth over Rs 420 crore against real estate developer Vijay Group Realty.
As per ET, the bank had moved the dedicated bankruptcy court against the company’s insolvency resolution professional’s decision to reject the claim and not include the bank in the committee of creditors (CoC). NCLT has rejected the claim, citing an uninvoked bank guarantee and the principal borrower account being a standard account, the ET report suggested.
Following the development, the scrip fell 2.10 per cent to hit a low of Rs 20.90. The scrip is down 16 per cent from December 14 high of Rs 20.90 a piece.
Also Read: YES Bank shares down 17% in 4 sessions. Where are they headed?
The ET report suggested that YES Bank, in its December 2021 response to a query from the resolution professional, had stated that the developer had not defaulted in repayment of its loan and the bank had not invoked the corporate guarantee provided by the corporate guarantor.
Technical analyst Manish Shah said the ongoing decline in last couple of days is a good opportunity for traders to enter into the stock. He said major support for the banking stock is placed at Rs 19.50-19. He finds Rs 19.50 to 19 levels a good zone. He advised traders to keep a stop loss below Rs 17.50 for a potential upside towards 26.50-27 level over next few weeks.
Another expert felt one may see a period of consolidation and that the Rs 18 level should now act as a floor for YES Bank. The Rs 18–25 is a well-defined trading range in the near term, and any decisive move from this zone will dictate further direction, said Santosh Meena, Head of Research at Swastika Investmart.