NEW DELHI: Shares of YES Bank slumped almost 5 per cent in morning trade on Monday and looked on course to break their two-day winning run after the domestic rating agency Icra downgraded the bank's long-term bond ratings and guided for a negative outlook.Icra downgraded the ratings on six instruments totaling borrowings over Rs 33,000 crore by the lender, after it had last week reported a surge in BB and below-rated advances in the March quarter to 7.1 per cent under a new chief executive Ranveer Gill.
The rating action comes after the agency placed the ratings under watch with negative implications last November, after the Reserve Bank refused to let YES Bank's promoter-chief executive Rana Kapoor to continue beyond January 31, citing corporate governance and other concerns, which ultimately led to Gill's appointment in March.
The bank had also reported its maiden loss of over Rs 1,506 crore in the March quarter, driven by a near ten-fold spike in provisions.
Since the earnings announcement, the bank's shares had lost over 35 per cent of value, with a 30 per cent fall on the very next day of trade.
Around 9:55 am, shares of YES Bank traded 2.51 per cent down at Rs 171.20 on BSE.