On Thursday, reports of the takeover by SBI and LIC has led to a 25 per cent jump in Yes Bank shares. (Photo Credit: Representational Image)
The shares of Yes Bank on Friday suffered a massive beating and plunged almost 50 per cent after the company was placed under a moratorium by the Reserve Bank of India (RBI). At 11.05 AM, the shares were priced at 18.45, down 49.93 per cent, on the BSE. On the NSE, it plummeted 50 per cent to Rs 18.40.
Yes Bank was not the only banking share to take a dive with the entire banking pack crashing in the opening trade. RBL Bank was trading 15 per cent lower, followed by IndusInd Bank which dropped 11 per cent, SBI 7 per cent and Axis Bank 4 per cent on the BSE.
Indian markets opened in red on Friday with with the BSE benchmark tanking 1,459.52 points in opening session. At 11.05 AM, it was trading at 37,252.68 down 1,217.93 points or 3.17 per cent. The NSE Nifty was trading under 11,000-mark in the opening trade. It was down 375.15 points or 3.33 per cent at 10,893.85 at 11.05 AM.
The capital-starved Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board on late Thursday. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender. Shares of Yes Bank had zoomed 27 per cent on Thursday on reports of the bailout.
(With PTI Inputs)