Shares of Yes Bank extended their gains for the second straight session on Friday. The stock jumped as much as 14.93 per cent to hit a day high — also its 52-week high — of Rs 20.40 as against its previous close of Rs 17.75. A total of 616.23 lakh shares changed hands today on BSE, amounting to a turnover of Rs 120.47 crore. The lender’s market capitalisation or m-cap stood at Rs 49,987.86 crore.
Analysts largely attributed today’s upward move in the counter to the deal with two private equity (PE) firms and a “sharp upswing” in banking stocks.
AK Prabhakar, Head of Capital, IDBI Capital, said, “The rise in Yes Bank shares could be public sector banks’ rub-off effect. The upward move could also be due to the deal with two PE funds.”
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Private equity majors Carlyle and Advent have got the Reserve Bank of India’s (RBI’s) nod to own up to 9.99 per cent in Yes Bank, the private sector lender said.
The two PE funds in July this year expressed an intent to pump in over Rs 8,000 crore in Yes Bank, subject to regulatory approvals. A regulatory nod is required to own over 5 per cent of a lender.
Pavitraa Shetty from Tips2trades, said, “A strong uptrend in Nifty Bank has led to a sharp upswing in a majority of the banking stocks including Yes Bank. Yes Bank has a stiff resistance at Rs 19.8 and investors should book profits at current levels and wait for a dip near Rs 15.8-16 to buy for targets of Rs 21-21.8 in the near term.”
On the earnings front, the private lender’s net profit for the September quarter slipped 32 per cent, on a yearly basis, to Rs 152.82 crore from Rs 225.5 crore, posted in the same quarter last year.
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