Yes Bank plunges over 12% as 3-year lock-in period expires today

Yes Bank shares plunged over 12% on Monday, falling to a low of Rs 14.40 intraday as investors looked to book profits in the early trade. The stock was trading at Rs 15.45 and was down by Rs 1.05 or 6.36%. The lock-in period for the consortium of 8 lenders led by the State Bank of India (SBI), who invested in YES Bank in 2020, is expiring today.
As of Friday, the stock has fallen 5% so far in March, following a meagre 1% gain in February and 16% losses in January.

However, analysts believe the downside for the stock may be limited as it has already seen a decent correction.

Citing sources, ET Now reported that Yes Bank would likely submit a compliance certificate report to the Reserve Bank of India (RBI). The official confirmation of coming out of the reconstruction framework will come out from the RBI, and for that, the custodians of the bank will reach out to the RBI.

In March 2020, SBI, Housing Development Finance Corp or HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, and IDFC First Bank cumulatively invested Rs 10,000 crore in YES Bank to save the lender from bankruptcy and avert any systemic risks to the banking system.

SBI holds the highest stake at 26%, and the market value of its holding has appreciated more than 60% in the last 3 years.

Yes Bank's fall was despite the overall markets doing well around this time. Frontline index Nifty50 was trading at 17,498.40, up by Rs 85.50 or 0.49% from the Friday closing. Meanwhile, the 30-stock S&P BSE Sensex was trading 366.49 points or 0.62% up at 59,501.62.

As for the banking gauge Nifty Bank, the 12-share index was trading at 40,582.50, higher by 97.05 or 0.24%.

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