YES Bank jumps 8% on likely upgrade from Amfi, ARC plans

MUMBAI: Private lender YES Bank rose nearly 8 per cent continuing its winning streak on hopes the stock will be upgraded to large cap category from mid cap by mutual fund industry body The Association of Mutual Funds in India (Amfi).

Separately, the stock also got a boost from the lender’s likely plan for an asset reconstruction company (ARC). An ET report said around Rs 40,000 crore of bad loans by YES Bank are proposed to be housed in the ARC.

At 10:01 am, YES Bank was up 7.55 per cent at Rs 16.95, while benchmark Sensex rose 0.61 per cent to 45,705.63 points.

Yes Bank including four other firms- Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Food-Works - are likely to get upgraded as part of the half-yearly market-cap categorisation by mutual fund industry body AMFI, which is expected to release a fresh list by January 5, according to brokerages.

According to a report in the Economic Times, ICICI Securities has assigned a high probability to the first four and a low probability for Jubilant FoodWorks to get upgraded to large cap stock.

The stock has eroded substantial value this year, and is down more than 64 per cent for the year to date, despite recovering 37 per cent over the last one month.