Beleaguered private sector lender YES Bank on Tuesday ended the trading session in the green. It closed 58% higher at ₹58.65 a piece in a day when the benchmark S&P BSE Sensex lost 810.9 points to settle at 30,579.09 points.
In fact, the YES Bank stock climbed as much as 73% to Rs 64.15 on the BSE at 10:57 am after rating agency Moody’s upgraded the bank’s outlook from ‘negative’ to ‘positive’, and marginally raised its rating on Monday.
“We upgraded YES Bank’s long-term foreign currency issuer and foreign currency senior unsecured MTN programme ratings to Caa1 from Caa3 and (P) Caa1 from (P) Caa3, respectively,” Moody’s said in the statement.
The YES Bank stock has been gaining strength largely on account of the Rs 10,000-crore investment committed by seven banks, led by State Bank of India (SBI), India’s largest public sector lender. YES Bank’s share price has surged over 150% in a matter of three sessions. It dropped to its all-time low on March 6 but has bounced back and gained over 1,000% from that level.
The Reserve Bank of India had superseded the YES Bank board on March 5, and bank operations were placed under moratorium under an administrator. YES Bank will commence normal bank operations from 6 pm on Wednesday.