Comments
YES Bank founder Rana Kapoor, on Thursday, said he does not want to come back on the board, and expressed full confidence in the new Managing Director and CEO Ravneet Gill. The private sector lender’s shares, however, fell nearly 13 per cent on Thursday.
“The Rana Kapoor promoter group fully supported and voted in favour of all 19 resolutions at the 15th AGM on June 12. The YES Bank leadership team, MD and CEO Ravneet Gill, and board of directors have my fullest support,” Kapoor said in a series of tweets.
He also denied that he is attempting a comeback to the board. “I reiterate that I have fullest confidence and conviction in the management under Ravneet Gill’s leadership and board of directors. YES Bank is an embodiment of Indian professional entrepreneurship, and the ongoing ‘Hanumanian’ efforts will overcome this transitional phase,” he further said.
His comments come a day after the bank’s annual general meeting which he did not attend. Kapoor’s term as MD and CEO of YES Bank came to an end on January 31 after the RBI did not agree to a proposal for a longer tenure.
At the AGM on Wednesday, shareholders of YES Bank were keen on knowing the bank’s strategy to improve its financials, as well as plans of the top management, although there were not too many questions on the re-entry of the private sector lender’s founder Managing Director and CEO Rana Kapoor. “The management clarified the board-level exits in the last one week. Downgrades were also discussed, but it is up to the rating agencies. The management said that once there is performance in one or two quarters, the rating will be changed,” said Dinesh Bang, a CA and a shareholder of YES Bank, who attended the AGM.
He further said that not much was discussed on the re-entry of Kapoor. “I think, once the RBI has cut short the term, backdoor entry is not possible,” he said, adding that shareholders wanted to know about the new management.
Scrip falls
The YES Bank scrip fell 12.96 per cent on the BSE on Thursday to close at ₹117.20 apiece.
This could possibly be a reaction to a report by Swiss brokerage UBS, which sharply cut its price estimate on the stock, saying the risk of NPA is higher than current expectations.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.