Yes Bank shares slide towards the end of the 3-year lock-up period

Yes Bank’s shares fell by more than 50% after the restructuring. (File)


Shares in Yes Bank Ltd fell 12.7% to a seven-month low on Monday at the end of a three-year lock-up period that prevented investors from selling shares they bought as part of the lender’s restructuring.

The Reserve Bank of India (RBI) has required Yes Bank shareholders, which include State Bank of India (SBI) and other private lenders, to hold up to 75% of the shares acquired as part of the March 2020 restructuring.

Yes Bank shares have fallen more than 50% since the restructuring, including about 20% this year after the lender reported an unexpected 80% drop in quarterly profit in January.

At Monday’s low, Yes Bank shares recorded their biggest intraday percentage drop in nearly three years, recovering to trade 3.3% lower at Rs 15.95.

SBI is Yes Bank’s largest shareholder with a 26.14% stake in Yes Bank as of December 31, according to regulatory filings, and other lenders bought the bank’s shares at Rs 10 each in March 2020.

State-owned companies ICICI Bank Ltd, Axis Bank Ltd, IDFC First Bank Ltd, Kotak Mahindra Bank Ltd and Housing Development Finance Corp and Life Insurance Corp of India hold between 1% and 4.34% stake in Yes Bank.

According to Refinitiv, the average recommendation of 14 analysts covering Yes Bank stock is “Sell,” and their average price target is Rs.15.

(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)

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