NEW DELHI: Shares of Yes Bank came under massive selling pressure on Friday, plunging 56 per cent at close, after the cash-strapped lender was placed under a 30-day moratorium.
On the BSE, the scrip sank 56.04 per cent to close at Rs 16.20 as investors deserted the counter. During the trade, it nosedived 84.93 per cent to Rs 5.55 -- its 52-week low. It plummeted 54.89 per cent to close at Rs 16.60 on the NSE.
The company's market valuation also dropped Rs 5,266.23 crore to Rs 4,131.77 crore on the BSE. In volume terms, 1,063.36 lakh shares were traded on the BSE and over 126 crore shares changed hands on the NSE during the day.
The entire banking pack also came crashing, with RBL Bank closing 14 per cent lower, followed by SBI which dropped 6.19 per cent, IndusInd Bank 5.62 per cent, The Federal Bank 3.79 per cent, ICICI Bank 3.67 per cent and Axis Bank 2.90 per cent on the BSE.
The BSE bankex fell 3.46 per cent. The broader market was also hit hard, with the BSE benchmark Sensex tanking 893.99 points to close at 37,576.62.
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.
The 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. According to Santosh Meenas, Senior Analyst, TradingBells, the market took this event very negatively because it raises a question on the stability of the overall Indian financial system.
"Statements from corporate chieftains helped bring some stability to the free fall in the stock price of Yes Bank. But the collateral damage to the broader market expecting second and third degree impact of this event was to be seen to be believed," said Deepak Jasani- Head Retail Research, HDFC Securities said.