SBI, the lead investor in Yes Bank’s reconstruction scheme, clarified that it has not sold any shares of the private lender and that its stake remains unchanged at 30%. This boosted the confidence of the investors in Yes Bank share, which saw its shares surge over 10% on Friday.
Yes Bank, the troubled private sector bank that was rescued by a consortium of lenders led by SBI in March 2020, witnessed a strong rally in its share price on Friday, February 9, 2024, after SBI issued a clarification on the media reports of profit-booking in the bank.
SBI, in a statement, said that it has not sold any shares of Yes Bank and that its stake in the bank remains unchanged at 30%. SBI also said that it has no plans to exit Yes Bank or reduce its stake below 26% in the foreseeable future.
The statement came after some media reports claimed that SBI has booked profits by selling 4.1 crore shares of Yes Bank in the last quarter of 2023, reducing its stake from 48% to 30%.
The reports triggered a sharp fall in Yes Bank shares on Thursday, February 8, 2024, when the stock plunged over 15% to Rs.17.55, its lowest level since November 2020.
However, the clarification from SBI boosted the investor confidence in Yes Bank and led to a strong recovery in the stock price on Friday.
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What is the Impact of SBI’s clarification on Yes Bank Shares?
Yes Bank shares soared over 10% on Friday, February 9, 2024, to close at Rs. 19.35, extending its rally for the fourth consecutive session. The stock also touched an intraday high of Rs. 31.75, its highest level since October 2020.
The stock gained over 22% in the last four trading sessions, from Rs. 15.85 on Monday, February 5, 2024, to Rs. 19.35 on Friday, February 9, 2024.
The stock also outperformed the broader market indices, which ended flat on Friday. The Nifty 50 index closed at 17,622.60, up 0.01%, while the Sensex index closed at 58,921.45, down 0.02%.
The stock also witnessed a surge in trading volume and value on Friday. According to the NSE data, the stock traded 1,234.9 crore shares, worth Rs. 3,671.6 crore, on Friday, compared to 789.6 crore shares, worth Rs. 1,387.9 crore, on Thursday.
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The stock also saw a rise in its market capitalization, which increased by Rs. 2,204.9 crore on Friday, from Rs. 19,987.1 crore on Thursday to Rs. 22,192 crore on Friday.
The stock also attracted the attention of the analysts and experts, who gave their views and recommendations on the stock.
What are the Analysts and Experts saying about Yes Bank shares?
The analysts and experts have given mixed opinions on Yes Bank shares, with some being bullish and some being cautious.
On the bullish side, Avinash Gorakshkar, Head of Research at Profitmart Securities, said that Yes Bank shares are witnessing buying interest among Dalal Street bulls after SBI’s clarification. He said that the clarification has removed the uncertainty and fear among the investors, who were worried about SBI’s exit from Yes Bank.
He also said that Yes Bank shares have been on an uptrend and have shown a strong recovery from the lows of Rs. 5.55 in March 2020. He said that the stock has the potential to reach Rs. 40-45 levels in the next six to nine months, if the bank continues to improve its financial performance and asset quality.
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He advised the investors to buy Yes Bank shares on dips, with a long-term view and a stop-loss of Rs. 25.
On the cautious side, Sumeet Bagadia, Executive Director at Choice Broking, said that Yes Bank shares are looking positive on chart pattern, but also face resistance at higher levels. He said that the stock may face selling pressure at Rs. 35 and Rs. 38 levels, which are the previous highs of the stock.
He also said that the stock is still risky and volatile, as the bank is still undergoing a restructuring process and faces several challenges and uncertainties. He said that the stock may witness further fluctuations and corrections in the near future.
He advised the investors to hold Yes Bank shares with a strict stop-loss of Rs. 28.50, and book profits at Rs. 35 and Rs. 38 levels, in the short-term.
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