YES Bank may launch QIP this week; shares up 5%


NEW DELHI: Shares of YES BankNSE 5.24 % gained over 5 per cent in trade on Tuesday after ETNow reported that the private sector is preparing to raise funds through qualified institutional placement (QIP) later this week.

The report added that the management of the bank has met key domestic investors over the last few days.

“HDFC AMC may be keen to participate in the QIP,” ETNow reported.

Motilal Oswal, JM FinancialNSE 1.00 % are appointed as bankers to QIP issue, the report stated.

The issue has witnessed good pre-demand from domestic investors as well as private equity players.

Last month, YES Bank posted around 91 per cent drop in net profit to Rs 113.76 crore for the quarter ended June 2019 due to lower other income and higher provisioning. It had posted a net profit of Rs 1,260.36 crore in the year-ago period.

Net interest income — the difference between interest earned on loans and that paid on deposits, increased 2.8 per cent to Rs 2,280.84 crore in Q1 FY20 from Rs 2,219.14 crore in the corresponding period last year.

The shares of the lender closed 5.30 per cent higher at Rs 85.40 on BSE.