Yes Bank plummets over 10% after Moody's downgrades rating of lender with a negative outlook

New Delhi: Shares of Yes Bank crashed over 10 percent on Friday, hit by ratings downgrade by Moody’s Investors Service.

#MarketAtClose | YES BANK down 19% this week, biggest weekly fall in nearly 3 months pic.twitter.com/og01bVvrcg

— CNBC-TV18 (@CNBCTV18Live) December 6, 2019

The lender’s shares settled 9.82 percent lower at Rs 56 on the BSE. During the day, the scrip fell to Rs 55.20, down 11.11 percent from the previous close. Similarly, the stock dived 10.47 percent to Rs 55.60 per unit on the NSE. Intra-day, it fell 11.15 percent to Rs 55.15. [caption id=“attachment_5595711” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] In terms of volume, more than 28 crore shares were traded on the NSE during the day, while over two crore shares changed hands on BSE. Global ratings agency Moody’s Investors Service on Thursday downgraded the ratings of the private sector lender, with a negative outlook, expressing concerns on its asset quality troubles and shrinking capital buffers. The rating downgrade comes days before the board of the bank is slated to meet to finalise fund raising plans on 10 December. It also said the bank’s claim to have received investor interest to the tune of $2 billion has “significant execution risks around the timing, pricing as well as regulatory approvals”. “Yes Bank’s funding and liquidity compares weakly to other rated private sector peers, and can come under pressure if the bank failed to strengthen its solvency in the next few quarters,” it added. Shares of Yes Bank ended with losses in four out of five trading sessions this week. The stock managed to gain nearly 6 percent on Wednesday.