Stocks

YES Bank slumps 6.6%

BL Internet Desk Aug 31 | Updated on August 31, 2018 Published on August 31, 2018

Shares of YES Bank slumped as much as 6.6 per cent in today’s trade as uncertainty around CEO's continuation weighs.   -  REUTERS

Shares of YES Bank slumped as much as 6.6 per cent in today’s trade as uncertainty around CEO's continuation weighs.

Following a weak open at Rs 343 against the previous close of Rs 361.90, the stock touched intraday high of Rs 350 and a low of Rs 338. In terms of equity volume, 30.93 lakh shares exchanged hands in the morning trade.

YES Bank had said in a BSE filing on Thursday that the Reserve Bank of India has approved the appointment of Rana Kapoor as the Managing Director and CEO of YES Bank until further notice. Kapoor's current tenure ended on Thursday. The central bank’s approval till further notice has caused uncertainty among investors.

Citi Research has initiated 30-day negative catalyst watch due to uncertainty around the continuation of Kapoor as MD and CEO. Delay from RBI raises risk that he might not get an extension or might get a curtailed term, both of which could lead to stock volatility, it says.

The prominent challenge would be the thin capital position and without a visibility on the top management continuity, raising fresh equity would be a fairly troubled space, Jefferies says.

In no other private bank MD appointments, the RBI has asked for additional information and asked the board to “re-validate” the terms of reappointment at the 11th hour, says Macquarie.

More than 20.4 million shares changed hands, 2.2 times the 30-day moving average. YES Bank stock had gone up 14.8 per cent this year as of last close.

(With inputs from Reuters)

Published on August 31, 2018
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