Shares of Yes Bank continued their winning run for the third session in a row on Thursday, hitting a fresh 52-week high of Rs 32.70 on the NSE. The private lender’s stock has rallied nearly 43% during this period after the Reserve Bank of India’s (RBI) nod to HDFC Bank for acquiring up to 9.50% of the paid-up share capital or voting rights of the bank.
On Thursday, the stock jumped by over 7% on the intraday basis amid strong volumes. At 9:35 pm, nearly 45 crores were trading on the NSE. The traded value of the shares stood at Rs 1,432.88 crore.
The RBI, while granting the above referred approval has also conveyed that if HDFC Bank fails to acquire major shareholding within a period of 1 year from the date of the said RBI intimation letter, the approval will stand cancelled.
HDFC Bank has also been asked to ensure that its aggregate holding in Yes Bank does not exceed 9.50% of the paid-up share capital or voting rights of the bank at all times. “If the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank,” the exchange filing said.
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YES Bank reported robust growth in profit for the quarter ended December 2023, with the bottom line surging more than four times year-on-year (YoY) to Rs 231 crore.
Net interest income, the difference between interest earned and interest expended, rose 2.4% YoY to Rs 2,017 crore.
Provisions for the quarter dropped sharply, which aided growth in the bottom line. Provisions and contingencies for the reported period stood at Rs 555 crore, compared with Rs 845 crore a year ago.
Despite this, the pre-provision operating profit declined 5.4% YoY to Rs 864 crore.
Gross non-performing assets as a percentage of total loans stood at 2.0% as of December end, unchanged from the year-ago as well as quarter-ago periods.
Net non-performing assets ratio stood at 0.9% as of December-end, compared to 1.0% a year ago. It was unchanged from the September quarter period.
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