YES Bank shares in focus after Rs 201-crore recovery from NPA settlement
YES Bank shares will be in focus on Monday after the private sector lender announced a one-time settlement (OTS) related to a non-performing asset (NPA), resulting in a recovery of Rs 201 crore.
ADVERTISEMENT In a stock exchange filing, the bank said, 'YES BANK has executed an OTS in connection with an NPA, and the borrower has paid Rs 201 crore in full and final settlement of the monies owed to the Bank.'
The net amount received—after adjusting for the carrying value of the asset—exceeded the materiality threshold under the amended Listing Regulations, thereby triggering a disclosure under Regulation 30.
Also Read: 11 Nifty mid & smallcap stocks that can rally 40-90% over the next 12 monthsEarlier this month, international rating agency Moody's upgraded YES Bank's rating to Ba2 from Ba3 and revised the outlook to Stable, citing improvements in the bank's credit profile. The agency also raised the bank's baseline credit assessment (BCA) to ba3 from b1.'YES Bank's 'Ba2' deposit ratings are one notch above its 'ba3' BCA based on our expectation of a moderate likelihood of support from the Government of India in times of need,' Moody's said.
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Also Read: Is the grey market premium misleading? Decoding the valuation gap in HDB Financial's IPO
Separately, the Reserve Bank of India (RBI) recently approved a six-month extension for Managing Director and CEO Prashant Kumar, effective from October 6 or until a new MD & CEO takes charge. Kumar's current three-year term ends in October, and the bank has initiated a global search for his successor.
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In May, Sumitomo Mitsui Banking Corp (SMBC) signed a definitive agreement to acquire a 20% stake in YES Bank for Rs 13,483 crore at Rs 21.5 per share. The stake purchase includes 13.19% from State Bank of India and 6.81% from other banks, including Axis Bank, HDFC Bank, ICICI Bank, and others.
ADVERTISEMENT According to Trendlyne, the average target price for YES Bank is Rs 17, suggesting a potential downside of nearly 16% from current levels. Of the 12 analysts tracking the stock, most maintain a 'Sell' rating.The stock has gained 17% over the past three months but is still down 18% over the last 12 months. YES Bank's current market capitalisation stands at Rs 61,941 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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