Yes Bank shares plummet 85%; market valuation drops by Rs 5,432 crore

New Delhi: Shares of Yes Bank came under massive selling pressure as the session progressed on Friday and plunged nearly 85 per cent after the cash-strapped lender was placed under a 30-day moratorium.

On the BSE, the scrip sank 84.93 per cent to Rs 5.55-- its 52-week low -- as investors deserted the counter. It plummeted 84.64 per cent to Rs 5.65 -- its one year low -- on the NSE.

The company's market valuation also dropped Rs 5,432.02 crore to Rs 3,927.73 crore on the BSE.

The entire banking pack also came crashing, with RBL Bank trading 13 per cent lower, followed by IndusInd Bank which dropped 7 per cent, SBI 6.5 per cent and Axis Bank 3.55 per cent on the BSE.

The BSE bankex was trading lower by nearly 3 per cent in afternoon trade. The broader market was also hit hard, with the BSE benchmark Sensex tanking over 1,000 points.

"The Yes Bank fiasco has come as an out-of-syllabus question for the market amid ongoing worries of coronavirus," said 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, he said, adding that the market is facing a double-whammy situation where the global markets are struggling on the back of coronavirus worries and Yes Bank fiasco is a setback event on the domestic level.

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 announcement came late Thursday evening. 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.

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.