Mumbai (Maharashtra): Shares of Yes Bank dropped sharply by 25 per cent on Tuesday afternoon following market speculation about its capital and liquidity position.
India's fourth largest private sector bank called such reports as "speculative, unsubstantiated and irresponsible."
At 2:50 pm, Yes Bank was trading at Rs 31.05 per share at the National Stock Exchange, down 25 per cent.
"Recent market rumours and reports appear to have generated a lot of speculation around Yes Bank Ltd. We strongly refute them as being speculative, unsubstantiated and irresponsible," said Managing Director and CEO Ravneet Gill.
While this has impacted the share price adversely, the bank would like to state that its capital and liquidity position are comfortably above the regulatory threshold and the asset quality is in line with the guidance provided post Q1 FY20 results, he said in a statement.
"The bank's outstanding exposure to the housing finance and real estate conglomerate, which is in the news today (Monday), is totally secured. Over the last six months, there has been a reduction of about 30 per cent in this exposure. The account is standard and current," said Gill.
The bank's retail franchise continues to strengthen with an increase of 39 per cent in the number of new fixed deposit accounts over the previous quarter, he added.
Subsequent to receiving the go-ahead from the Reserve Bank of India on Friday, the bank is firmly on track to raising the required growth capital, said Gill.