Yes Bank board has approved raising up to Rs 10,000 crore and decided not to proceed with Erwin Braich's investment offer. Sources say the bank has roped in investment bankers Vallabh Bhansali, Ashok Wadhwa and Anshu Jain as advisors for fundraising.

Share Market Live

NSE

Sharing his views and readings on the stock , Ravikant Bhat of IndiaNivesh said, "We had earlier discussed that if the bank can manage to raise capital and the stock can move from the current levels, it can as well move up further once the capital has come in. There is a clear path ahead on growth."

Moreover, if I have remained invested in the stock through its roller-coaster, ride then I surely have the nerve to hold on further, he said, adding that a lot of investors may have exited the stock some time during the last one year because of lot of volatility.

“However, if there is no capital then the outlook becomes quite weak as far as growth is concerned. In fact, once Q3 results are announced, one will see that the balancesheet has shrunk quarter on quarter,” said Bhat.

When asked about a research report on Kotak Bank buying Yes Bank, he said he would ignore the report. "I don’t think it makes any sense for Kotak Bank to look at Yes Bank except for the fact that Yes Bank has a large branch network but there will be other headaches,” said Bhat.

From a stock perspective, he said, “The disappointment has been priced into the stock. So, whatever comes in is going to be some bit of a breather for another 2 or 3 quarters. Basically, they are now talking about Citax’s USD 500 million being considered, so if that money comes in, it will be a decent amount. So if this amount is raised, it is going to be a decent amount for them to further consolidate and focus on retail etc. However, the bank really needs is something in the region of USD 1.8-2 billion.”

“Although, we have a price target of Rs 80, we are not touching the stock as of now," he said. We do not review in-between quarters and will review only after the results, he added.

First Published:Jan 13, 2020 10:35 AM IST