InvestorQ : Why is Yes Bank continuing to fall and why did it fall so sharply even when the overall market was up?
Chandralekha Desai made post

Why is Yes Bank continuing to fall and why did it fall so sharply even when the overall market was up?

Answer
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Mitali Bhutta answered.
1 year ago


Yes Bank was down by nearly 8% in trades and the stock is now down nearly 70% from its peak levels. The consistent fall in the stock was first due to the changes in the management. Subsequently, the fall in price also happened because the markets were worried that Yes Bank could have a lot of bad assets in its books and that was also evident in the last quarter results. All these factors had taken the price sharply down in the last few months

However, the latest fall in the price of Yes Bank was for a different and specific reason altogether. The stock cracked on Tuesday after there were media reports that real estate developer, Radius, had defaulted on payments to Yes Bank and that again raised the spectre of realty bad assets in the books of Yes Bank. Radius is a major developer operating predominantly in the Bandra Kurla (BKC) area, which is one of the most prime office spaces in Mumbai. While the company has denied about any default, the news flows in the market are still rife.