Yes Bank Makes a Comeback: Re-Entering the F&O Segment After 4-Year

The December Futures & Options (F&O) series began on Friday, November 29, 2024, with a significant update—45 new entrants to the F&O segment. Among these, a familiar name caught everyone’s attention: Yes Bank. This marks Yes Bank’s return to the derivatives market after over four years of absence.

Yes Bank’s Journey Out of the F&O Segment

Yes Bank Ltd was excluded from the F&O segment in May 2020. This decision came in the aftermath of a challenging phase in the bank’s history:

• Moratorium Imposed: The Reserve Bank of India (RBI) placed Yes Bank under a moratorium, limiting withdrawals to Rs 50,000 per account.
• Board Superseded: RBI took control of Yes Bank’s management to stabilize the institution.
• Index Exclusion: In March 2020, the bank was also dropped from the Nifty 50 index.

These actions were necessary to manage a crisis situation that included severe liquidity challenges and eroded investor confidence.

Rescue and Recovery: The Role of SBI-Led Consortium

In 2020, a consortium of banks, spearheaded by the State Bank of India (SBI), came forward to rescue Yes Bank. This move was pivotal in averting a systemic crisis in the banking sector. Despite these efforts, the stock faced significant volatility:

• 2020: Yes Bank shares fell by 62%.
• 2021: A further decline of 23%.
• 2022: Signs of recovery, with the stock gaining 50%.
• 2024 (YTD): The stock is down by 6.71%, reflecting ongoing challenges.

The F&O Comeback: December Series Performance

Yes Bank’s re-entry to the F&O segment has sparked discussions in the market. Key details from its December series performance include:

• Initial Numbers: The December future contract opened at Rs 20.63.
• Intraday Movements: The contract saw an intraday low of Rs 19.98, 
• Contract Size: Each contract comprises 26,000 shares.
• Trading Volume: By 2:32 PM, 2,216 contracts had been traded, reflecting moderate activity.

While the stock’s journey in the F&O space is just beginning, this move adds an interesting chapter to its story.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.