YES Bank's move to get the police, including the cyber cell, to investigate the massive fall in the share price attributed to the fraudulent spread of fake news has not stopped the share from tanking, market reports show.
The share that had closed at Rs 273 on April 3, has been in the grip of bears and closed last week at Rs 42 on the National Stock Exchange (NSE). On Monday the stock slightly improved and was trading at Rs 45 by afternoon.
The bank said social media, including WhatsApp, were being widely used to spread rumours and fake news about the bank. The lender wants the authorities to ascertain the source of the information and also probe the short sell positions entered by any connected person, an Economic Times report said.
"Over the past few days, some miscreants have been spreading false information and malicious rumours about YES Bank on WhatsApp and other social media platforms to create panic and fear in the mind of its depositors. The messages attempt to portray the bank in poor light and are intended to tarnish the image of the Bank in the eyes of its depositors, stakeholders, and the general public," the lender said in a regulatory filing.
YES Bank added that it remains committed to protecting the interest of all stakeholders and promised to take strong steps against the fear/panic mongers.
"The bank appeals to its trusted patrons to be cautious of false information circulating against it and assures that its financial position continues to be absolutely safe and sound," it said.
Back-to-back reports of promoters selling stakes and lenders to the bank revoking shares pledged with them battered the stock badly last week. A rise in the share on Friday ensured the stock recovered and closed 13.63 percent down at Rs 42.20 for the week, the report said.
Meanwhile, another media report said YES Bank was in talks with three top technology companies, including Microsoft Corp, to induct one of them as a strategic shareholder as part of the bank's strategy to get a fresh capital infusion and augment its digital ambitions.
Citing two unidentified people aware of the discussions, Livemint reported that if the talks that began three weeks ago were productive, YES Bank could sell as much as 15 percent through a fresh equity issue.
"The top management of Yes Bank has held discussions with Microsoft as part of the bank's ongoing strategy to sell a minority stake to a global tech company. The stake sale may fetch the bank around Rs 2,000 crore but, more importantly, such a deal may help the bank work on its digital banking and payment system plans," said one of the two people.
