NEW DELHI: Shares of YES Bank climbed over 2 per cent in Tuesdays trade, even as the bank denied report suggesting four PE firms are looking to infuse money in the private lender.The scrip rose 2.09 per cent to hit a high of Rs 95.15 on BSE.On Monday, sources had told ET NOW that the bank has received Rs 850 million term sheet offer over the weekend from a consortium of four PE firms.
According to the report, the consortium leader was to pick a 10 per cent stake in the bank, while the rest together were looking to pick another 10 per cent.In a clarification issued on BSE, the bank said it, in the ordinary course of business, continues to explore various means of raising funds through the issuance of securities to a diverse set of investors, in order to meet its business regulatory requirements.The bank said it is not aware of the source and that it would not like to comment on speculation.According to ET report, the bank was likely to make the announcement after June quarter earnings due on July 17.
The private sector lender is expected to report subdued earnings for the June quarter on rising provisions amid deteriorating asset quality.
Kotak Institutional Equities projected a net loss of Rs 578.60 crore in Q1FY19 for YES Bank against a net profit of Rs 1,260.40 crore in the corresponding quarter last year.
The lender reported a net loss of Rs 1,506.60 crore in the preceding quarter ended March 2019.
Brokerage firm Prabhudas Lilladher sees 84 per cent YoY fall in net profit at Rs 201.10 crore for YES Bank in Q1FY19 on 22 per cent YoY rise in pre-provisioning operating profit.
It also projected that the asset quality of the lender may deteriorate further with percentage of gross non-performing assets (NPA) spiked to 3.70 per cent in Q1FY19 over 3.22 per cent in Q1FY18.