Yes Bank share price up 16%: What drove this counter TODAY? Here is what investors need to know

The private lender Yes Bank share price soared over 16 per cent to Rs 12.87 per share and touched a six-week high on the BSE intraday trade on Tuesday amid heavy volumes. The stock has been trading above current price since its highest level of Rs 12.86 per share on July 29, 2021. 

On the back of rating improvement, the stock price of YES Bank has gained by 18 per cent in the last three trading sessions, after the rating agency ICRA on September 9, affirmed private lender’s various instruments with a stable outlook.  

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“The ratings reaffirmation factors in the steady growth in the deposit franchise of Yes Bank since its reconstruction scheme and the consequent improvement in its liquidity position. While the growth in deposits has been appreciable, the share of corporate/wholesale deposits remains relatively high for the bank. Incrementally, YES Bank’s ability to build a more granular deposit franchise will continue to be key for its growth and profitability,” ICRA said in a report. 

The Stable outlook on the ratings reflects ICRA’s expectations that YES Bank will maintain the regulatory capital ratios, continue to improve its liability franchise and receive timely support from various stakeholders, if required, as demonstrated in the past, it added. 

Similarly, earlier on August 31, India Ratings had also affirmed YES Bank’s long term issuer rating at “BBB” reflecting adequate capital levels to withstand expected stress on book and improving deposit profile. 

The stock has been trading almost 12 per cent at Rs 12.37 a share on the BSE, as compared to a 0.15 per cent rise in the S&P BSE at around 02:47 pm. The trading volumes on the counter more-than-doubled, with a combined 585.57 million shares changed hands on the NSE and BSE so far.