YES Bank falls 3% after ICRA downgrades bank's long-term bond ratings

The firm has downgraded the lender's tier-I bond from "AA-" to "A" and tier-II bonds from "AA" to "AA-" The outlook is negative on both bonds, the bank said in a press note to the exchanges.


Share price of banking major YES Bank fell over 3 percent intraday on Monday after research form ICRA downgraded the bank's long-term bond ratings and guided for a negative outlook.

The bank's ability to resolve below rated advances in a timely manner will remain a key driver of its asset quality, profitability and capital position, said ratings agency ICRA. This was the stock’s worst intra-day per cent fall since April 30. It was down 3.3 per cent this year, as of the last close.

The firm has downgraded the lender's tier-I bond from "AA-" to "A" and tier-II bonds from "AA" to "AA-" The outlook is negative on both bonds, the bank said in a press note to the exchanges.

Also, Reserve Bank of India has imposed a penalty of Rs 11.25 lakh on it for violating money transfer norms. "(The) Reserve Bank of India (RBI) vide its speaking order dates April 22, 2019, imposed a penalty of Rs 11,25,000 under the Payment and Settlement Systems Act, 2007," Yes bank said in a regulatory filing.

The RBI has identified certain violations of its circular of 2011 on Domestic Money Transfer - Relaxations and master directions issued in October 2017 on issuance and operation of prepaid payment instruments in connection with certain product features for an open loop prepaid card (co-branded) previously issued by the bank, Yes Bank said.

At 11:42 hrs Yes Bank was quoting at Rs 170.25, down Rs 5.35, or 3.05 percent. It has touched an intraday high of Rs 171.90 and an intraday low of Rs 167.30.

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