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Last Updated : Jul 24, 2019 04:13 PM IST | Source: Moneycontrol.com

Rakesh Jhunjhunwala's Rare Enterprises meets Yes Bank officials after Q1 earnings

Generally brokerage houses or analysts meet companies to know more about their plans, current earnings growth & outlook, balance sheet and industry outlook

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Private sector lender Yes Bank said its representatives met Rakesh Jhunjhunwala's firm Rare Enterprises on July 22, 2019.

Generally, brokerage houses or analysts meet companies to know more about their plans, current earnings growth & outlook, balance sheet and industry outlook.

In case of Yes Bank, the meeting by Rare Enterprises could be to understand lender's June ended quarter earnings announced last week, about new initiatives taken by MD & CEO Ravneet Gill to clean books and about bank's growth structure ahead.

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Last week after June quarter earnings, Investec Capital Services, Nomura Financial Advisory & Securities, Macquarie Capital Securities, Axon Capital LP, Ashmore Investment Advisors India and Adi Capital Management also met officials of the private sector lender.

The stock gained 3 percent intraday on July 24. At 12:24 hours IST, it was quoting at Rs 91.35, up Rs 0.65, or 0.72 percent on the BSE.

Yes Bank's standalone profit in June quarter fell sharply by 91 percent to Rs 113.76 crore on nearly three-fold increase in provisions and weak asset quality.

But sequentially, the lender was back in black in Q1 against loss of Rs 1,506.64 crore in March quarter due to steep fall in provisions.

But after earnings, CEO Ravneet Gill said concerns about the private sector lender's asset quality are over-done and that it plans to raise capital to refocus on growth.

Gill, in his interview to CNBC-TV18, said the capital raised would be "for growth purposes only, and not to heal the balance sheet" of Yes Bank. "The bank is looking to conclude the capital raising exercise in the second quarter of FY20."

Meanwhile, Rana Kapoor and another promoter, Morgan Credits Private Limited (MCPL) had pledged entire shareholding of 7.34 percent during July 18-22, 2019.

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First Published on Jul 24, 2019 12:57 pm
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