The mood or sentiment rules the markets. Yesbank acquired 14% of CGPowers equity for 400 crs approx. which is now being seen as almost entirely written off while Yesbank lost over 10k crs in terms of market capitalisation since then. What a great irony, what a great conclusion.
Now coming to basic strength of Yesbank, it can’t be any poorer because it has been under cloud for far too long, the management has changed and is optimistic, RBI and other auditors have carefully gone in to looking at various aspects of finances, of practices and of reporting standards. The basic banking model is intact and is as modern as that of HDFC or Kotak. So should it be subjected to such kind of fall or there is still some thing concealed that hasn’t come to light but even if that be the case, those in know of the same can’t supply stock endlessly by selling. So what is happening is unloading by weaker hands without consideration of what yesbank is worth.