Stocks

YES Bank jumps 3%; board seeks extension for CEO’s term

Reuters Sept 26 | Updated on September 26, 2018

Rana Kapoor, Managing Director and CEO, YES Bank

Shares of YES Bank Ltd jumped as much as 2.9 per cent to Rs 226 as the lender plans to get RBI’s approval for extending CEO Rana Kapoor’s term until April 30, 2019.

YES Bank had on Tuesday said it needs more time to identify and groom the successor. The bank will seek extension for Kapoor's term in order to finalise the results for fiscal 2019 and until September 30, 2019, for its annual general meeting.

Deutsche Bank says given the uncertainties around YES Bank and its strategies, medium-term growth/fees may be challenging. It has cut the price target to Rs 310 from Rs 350 while retaining the “buy” rating.

Appointment of a credible new CEO now becomes critical for the stability of YES Bank’s operations, says Macquarie Research. About 31 of 46 brokerages covering the stock have “buy” or equivalent rating, 10 have “hold” while five have “sell” rating; their median price target is Rs 411.50.

The private lender had lost 30.3 per cent this year as of its last close, compared with rival ICICI Bank Ltd's 0.92 per cent decline and Axis Bank Ltd's 8.9 per cent gain.

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Published on September 26, 2018
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