Yes Bank: In the hunt

Shares of Yes Bank were locked at upper circuit of 5% at Rs 14.15 apiece on NSE, for the second straight session, as investor buying frenzy continued unabated. The jump in stock price comes after two positive developments.
MSCI Inc., the world’s largest index compiler with assets worth $15 trillion benchmarked its indices, has included Yes Bank to its standard index – MSCI India Domestic Index after its semi-annual review.
Additionally, CARE Ratings have revised its rating on Yes Bank’s debt instrument. The rating agency has revised the bank’s infrastructure bonds rating to ‘CARE BBB’ from previous ‘CARE B’.
CARE has also revised its outlook to ‘Stable’ from previous “Under Credit watch with Developing Implications” on the above-mentioned instruments.

The rating agency has also given ‘CARE BB+’ rating each on YES Bank’s Upper Tier II Bonds and Perpetual Bonds (Basel II) from previous ‘CARE D’.
Meanwhile, the media reports of the private sector lender gearing up to sell its non-performing assets (NPAs) worth Rs 32,344 crore to asset reconstruction companies (ARCs) or other potential investors are making rounds.
Yes Bank has issued a clarification saying that in its normal course of business, it explores options of selling NPAs to ARCs as it may deem necessary. However, at this point, it is not part of such specific discussions.

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