YES Bank surged the most in 3 weeks, and was the top percentage gainer on the NSE index. Shares of the private sector lender surged 8.5 per cent to Rs 204, marking their sharpest intraday gain since October 11. The stock was the top percentage gainer on the NSE index.
“Investors are relieved as YES Bank was not named by IL&FS among its top 5 creditors in its NCLT filing,” said Asutosh Mishra, banking sector analyst at Reliance Securities.
Debt-laden Infrastructure Leasing and Financial Services (IL&FS) has defaulted on some of its debt, sparking fears of contagion in Indian markets. In a filing on Wednesday that plots its revival plan to a company law tribunal, IL&FS had named State Bank of India, Bank of Baroda, Power Finance Corporation, Bank of India and IndusInd Bank as its top 5 creditors.
“There is some comfort on the front that YES Bank's exposure (to IL&FS) is mainly secured and that loss from the exposure could be contained,” said an analyst who did not want to be named.
About 48 million shares of YES Bank traded vs the 30-day moving average of 68.3 million shares. The stock had fallen 40.31 per cent this year as of last close.