Money & Banking

Yes Bank sees best day after RBI gives clean chit

Reuters Mumbai | Updated on February 14, 2019 Published on February 14, 2019

Yes Bank hired Ravneet Gill as its new CEO after the RBI denied Rana Kapoor an extension to his term twice last year without giving a reason. File photo

This came as a relief for Yes Bank, which reeled under pressure last year to bring in a new CEO amid an increasingly assertive approach by the RBI to tackle domestic banks' bad debts

Yes Bank Ltd's shares surged 30 per cent early on Thursday in their sharpest ever intra-day jump, a day after the Reserv Bank of India (RBI) cleared the private sector lender of any divergences in bad loan reporting practices.

More than 101 million shares changed hands by 0418 GMT, double the 30-day average trading volume, and making them the most heavily traded on the National Stock Exchange (NSE).

The central bank did not find any divergences in the asset classification and provisioning by Yes Bank for the fiscal year ending 2018, the bank said.

This came as a relief for Yes Bank, which reeled under pressure last year to bring in a new chief executive officer (CEO) amid an increasingly assertive approach by the RBI to tackle domestic banks' bad debts.

Yes Bank hired Ravneet Gill as its new CEO after the RBI denied Rana Kapoor an extension to his term twice last year without giving a reason.

Key overhang removed

Citi analysts said the positive report can support a more rapid return to market than otherwise would have been possible. They adding this would be one of the key priorities for Gill.

“We believe it is time for the RBI to increase transparency on decisions that have a significant impact on minority shareholders,” Jefferies analysts said.

Yes Bank's shares were last up 20.1 per cent in a broader Mumbai market that was down 0.25 per cent.

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Published on February 14, 2019
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