New Delhi, Aug 7 (SocialNews.XYZ) Adani Electricity Mumbai Ltd (AEML) has sold shares worth Rs 202 crore in Yes Bank.
This was done through an open market transaction on Thursday. AEML sold off 15 crore shares which represented 1.19 per cent stake in Yes Bank for an average price of Rs 13.45 per share, according to data from NSE.
On the other hand, Life Insurance Corp of India had said that it has bought additional shares of the lender through open market purchases.
Last week, Moody's Investors Service upgraded Yes Bank's long-term foreign currency issuer rating by a notch from Caa1 to B3 after Yes Bank the private lender raised Rs 15,000 crore in a follow-on public offer in July.
Moody's said Yes Bank's successful equity capital raise of Rs 50 billion (about $2 billion) has bolstered its solvency and is the main driver of the ratings upgrade. The successful equity raising showcases Yes Bank's regained access to external market funds, which is a result of its improving financial strength and will support depositor confidence.
Given the improved solvency, Moody's has upgraded Yes Bank's BCA to caa2 from ca. The bank's B3 issuer rating is two notches above the bank's caa2 BCA, reflecting Moody's expectation of a high level of support from Government of India (Baa3 negative), in times of need.
Following the capital increase, the bank's Common Equity Tier 1 ratio will more than double to 13.4 per cent from 6.6 per cent based on the bank's capital position at the end of June 2020, bringing its capitalization largely in line with its private sector peers.
The significantly improved solvency ratio strengthens the bank's resilience to potential asset quality risks resulting from the ongoing impact of the economic slowdown and coronavirus-related disruptions on India's economy.
Source: IANS
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