Yes Bank shares rise 2% after bank executes agreement for one-time settlement in stressed loan exposure

Yes Bank signed an OTS agreement on March 28, 2024, in which the borrower agreed to pay an aggregate amount of $23 million in full and final settlement against its dues to the bank.

In a stock exchange notification on Thursday, Yes Bank informed that it has received the entire amount as agreed under the settlement.

The OTS agreement amount had to be paid in two tranches. The first tranche of $5 million against execution of the settlement agreement had already been received earlier. The second tranche of $18 million was expected on or before three months from the date of execution of the settlement agreement.

“Yes Bank is now in receipt of $18 million towards Tranche 2,” the lender said in the notification.

After the announcement, Yes Bank share gained as much as 2.4% on Friday to hit an intraday high of ₹24.07 on the National Stock Exchange of India (NSE). The stock has jumped 47% in the past one year, but is up just over 5% year-to-date in 2024.

Earlier this week, media reports claimed that Yes Bank had laid off at least 500 employees in a restructuring exercise. The layoffs reportedly happened across several verticals, ranging from wholesale to retail. The people sacked have been given severance pay amounting to three months’ salary, reports added.