Nearly two months after acquiring a significant stake in private lender YES Bank, Japanese financial major Sumitomo Mitsui Financial Group (SMFG) is considering an additional investment of around $1.1 billion, Bloomberg reported on Tuesday.

According to the report, the deal would involve SMFG acquiring 5 per cent stake from the United States (US)-based investment fund Carlyle Group and other minority shareholders. Additionally, the Japanese major may also buy about $680 million in convertible bonds issued by YES Bank to help boost growth, the report added.

Shares of YES Bank moved higher up to 15 per cent to Rs 17.46 and hit the highest level since January 2021 on the BSE in Tuesday’s intra-day trade. The stock of private sector lender surpassed its previous high of Rs 16.25 that it had touched on April 7, 2022.

In the past three trading days, YES Bank gained 20 per cent after the bank announced to raise equity capital of around 1.1 billion (Rs 8,900 crore) from funds affiliated with two global private equity investors - Carlyle and Advent International, with each investor potentially acquiring up to 10 per cent stake in the lender.

The Allahabad High Court on Thursday dismissed a petition filed by YES Bank against the Uttar Pradesh police order that had restricted voting rights on shares of direct-to-home broadcaster Dish TV India. The bank, which holds 24.19 per cent stake in Dish TV India, moved the Supreme Court on Friday and the matter will be mentioned on Monday.

Dish TV shares were frozen by the UP police following a complaint by Essel group founder Subhash Chandra last year against the previous management led by Rana Kapoor over a merger deal brokered by the bank between Videocon D2H and Dish TV.

Shares of Yes Bank hit a 52-week low of Rs 11.89, down 1 per cent on the BSE in intra-day trade on Thursday in an otherwise firm market. The stock of the private sector lender was trading at its lowest level since August 3, 2020. Thus far in the calendar year 2021, the market price of Yes Bank has slipped 33 per cent, compared to a 14.6 per cent rally in the S&P BSE Sensex. It had hit a 52-week high of Rs 20.83 on December 11, 2020.

After a heavy loss in the January-March quarter of the financial year 2020-21 (Q4FY21), Yes Bank returned to profitability in the April-June quarter of the financial year 2021-22 (Q1FY22) with a profit of Rs 210 crore, mainly led by higher other income and lower provisions.

Shares of YES Bank hit an over four-month high of Rs 18.90, up 9 per cent on the BSE in early morning trade on Wednesday after the bank announced that Brickwork Ratings has upgraded the rating of Tier I Subordinated Perpetual Bonds (Basel II) from BWRD to BWR BB+/ Stable. The stock of the lender was trading at its highest level since July 22, 2020.

With today’s gain, the stock of YES Bank has rallied 50 per cent in the past one month, as compared to a 9.5 per cent rise in the S&P BSE Sensex.

Yes Bank on Tuesday said the loan repayments performance by its retail and small business borrowers has been better than expected, and only Rs 300 crore of the Rs 60,000-crore book has applied for the COVID-19-related loan restructuring scheme.

The collection efficiencies at about 95-96 per cent right now are back to the pre-COVID-19 levels of 97 per cent, its Global Head for Retail Business Rajesh Pental told PTI.

Private sector lender YES Bank’s net profit rose sequentially to Rs 129 crore in the second quarter ended September 30 this year from Rs 45 crore in the first quarter ended June 30. The bank had posted a loss of Rs 600 crore in Q2 of the previous financial year.

Net interest income (NII) rose 3.4 per cent sequentially to Rs 1,973 crore in Q2 from Rs 1,908 crore in the previous quarter. On year-on-year (YoY) basis, NII was down by 9.7 per cent from the base of Rs 2,186 crore in the second quarter of the previous year.

Private sector lender YES Bank expects to bring down credit-to-deposit (C/D) ratio to below 100 per cent by March 2021, from the current levels of 122 per cent in order to bring a balance in the asset-liability equation. The C/D ratio was 122.9 per cent in September, down from 140.2 per cent in June. It was at 162.7 per cent in March.

Bank officials said while it was possible to bring down the ratio below 100 per cent much earlier, YES Bank, too, has to look at interest earning for which credit expansion is equally important.

Shares of YES Bank extended their decline itnto second straight day, down 17 per cent to Rs 21.20 in the intra-day trade, on the BSE on Monday on the back of heavy volumes after the bank on Friday fixed floor price for its proposed follow-on public offer (FPO) at Rs 12 per share and a cap of Rs 13 per unit. In the past two trading days, the stock has tanked 20 per cent from a level of Rs 26.65 on the BSE.

YES Bank, on which the Reserve Bank of India (RBI) had imposed a moratorium, will resume normal operations from 6 pm on Wednesday.

On Tuesday, administrator of the troubled private sector lender, Prashant Kumar, said that YES Bank will resume normal operations from 6 pm on March 18 and it has no liquidity problem.

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