MUMBAI, July 9: Shares of Yes Bank bounced back today, rising nearly 3 per cent, after the company dismissed concerns raised by foreign brokerage UBS over its asset quality.
The stock went up by 2.84 per cent to Rs 820 on BSE.
At the NSE, shares rose by 2.82 per cent to Rs 820.
Yes Bank shares had tanked almost 7.50 per cent yesterday following concerns over asset quality raised by foreign brokerage UBS, which the bank dismissed as a “distorted picture”.
UBS’ sectoral report on stressed exposures identified Yes Bank as the most vulnerable among lenders to a prolonged weak credit cycle and added that consensus may not be ready for a sharp increase in the bank’s credit costs.
In the wake of continued economic sluggishness, the brokerage analysed documents submitted to the Registrar of Companies, which are used by companies to secure loans, and the overall exposure of the banking system analysed stood at USD 100 billion.
After market hours yesterday, the bank released a report by UBS’ Australian rival brokerage Macquarie which said the asset quality worries are exaggerated.
“This report (UBS) has exaggerated the exposures attributed to Yes Bank given that the RoC filings reflect historically sanctioned amounts, which are dated and therefore do not reflect the actual outstanding exposures.
“The report compares sanction amounts to total loans outstanding as on March 31, thus presenting a distorted picture,” the bank had said in a statement. (PTI)
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