Knocksense Shorts | Yes Bank lock-in period ends today; Share value stands at ₹15.70

Yes Bank shares are expected to remain volatile as the three-year lock-in period will end today, on March 13. In March 2020, the Reserve Bank of India (RBI) superseded Yes Bank’s board due to the bank’s issues with deteriorating asset quality, inadequate capital and losses on its books. As part of the central bank’s reconstruction scheme, India’s largest lender, SBI, initially infused a capital of ₹6,050 crore for a 48% stake in Yes Bank.

Under the reconstruction scheme 2020, investors were barred from selling shares acquired in Yes Bank in the secondary market for three years. Analysts believe that shares of Yes Bank may face selling pressure today as the mandated three-year lock-in period for individual investors and exchange-traded funds is ending today.