Yes Bank dips over 7% on concerns over exposure to CG Power

NEW DELHI: Shares of Yes Bank on Tuesday dropped over 7% amid concerns over its exposure to CG Power and Industrial Solutions which has been hit by alleged financial irregularities and unauthorised transactions.

The scrip tanked 7.11% to close at Rs71.25 on the BSE. During the day, it plummeted 8% to Rs70.55.

On the NSE, the shares tumbled 6.65% to close at Rs71.55.

It was the top loser among the front-line companies on both the key indices BSE Sensex and NSE Nifty.

The company’s market valuation fell by Rs3,035.31 crore to Rs16,524.69 crore on the BSE.

In terms of traded volume, 104.52 lakh shares were traded on the BSE and over 16 crore shares on the NSE during the day.

Yes Bank has 12.79% stake in CG Power as in the June 2019 quarter on BSE.

“While working on one of its priority tasks of seeking refinancing of certain facilities and as a part of conducting financial analysis in this regard, the Operations Committee was made aware of some unauthorised transactions by certain employees of the company, said CG Power in a BSE filing early morning on Tuesday post a marathon meeting. The board also found that the total liabilities of the company and the group may have been potentially understated. The filing also said that advances to related and unrelated parties of the company and the group may have been potentially understated.