te Yes Bank share price crashes by nearly a third after RBI curtails CEO Rana Kapoor's term | Zee Business

Yes Bank share price crashes by nearly a third after RBI curtails CEO Rana Kapoor's term

Private sector lender Yes Bank share price tumbled nearly a third on Friday, wiping as much as $3.1 billion off its market value, after the central bank reduced charismatic CEO Rana Kapoor's term, creating uncertainty about its outlook.  

Yes Bank share price crashes by nearly a third after RBI curtails CEO Rana Kapoor's term
Private sector lender Yes Bank share price tumbled nearly a third on Friday, wiping as much as $3.1 billion off its market value. Image source: Reuters

Private sector lender Yes Bank share price tumbled nearly a third on Friday, wiping as much as $3.1 billion off its market value, after the central bank reduced charismatic CEO Rana Kapoor's term, creating uncertainty about its outlook.

The Reserve Bank of India (RBI) said late on Wednesday Kapoor can serve as the lender`s chief executive only till Jan 31 next year. It did not give a reason.

Kapoor co-founded the bank and has been instrumental in its rise to become India`s fifth-largest private sector bank with assets of $43.19 billion. 

TRENDING NOW

RBI`s move came after Yes Bank`s shareholders voted in June to extend Kapoor`s term as CEO and managing director for three years, pending central bank approval. 

Yes Bank and RBI did not immediately respond to requests for comment.

Yes Bank shares sank as much as 31.7 percent to 287.30 rupees on Friday, with more than 158 million shares changing hands - over seven times their 30-day average volume. They cut their losses to be down 20 percent by late morning.

Indian stock markets were closed on Thursday for a holiday. Before Friday`s trading, Yes Bank had a market value of about $10 billion.

At least two brokerages downgraded the stock, citing uncertainty and doubts in investors` minds about the bank`s future.

Nomura analysts said a need to raise growth capital in troubled times, investor doubts about asset quality and the RBI`s concerns for Kapoor continuing in his position could weigh on the stock. 

The research firm downgraded the stock to "neutral" from "buy", reducing its target price to 345 rupees.

Written By: Reuters
Updated: Fri, Sep 21, 2018
02:26 pm
Reuters
RELATED NEWS
D-Street Newsmakers: Yes Bank, Tata Motors among stocks that buzzed most on November 16 D-Street Newsmakers: Yes Bank, Tata Motors among stocks that buzzed most on November 16
Yes Bank introduces UPI payments through its RuPay credit cards; Know how it works Yes Bank introduces UPI payments through its RuPay credit cards; Know how it works
Yes Bank Q1 Results: Bank's net profit rises 10% to Rs 343 crore; total income jumps 29% Yes Bank Q1 Results: Bank's net profit rises 10% to Rs 343 crore; total income jumps 29%
RBI rejects appointment of Akash Suri as CEO of Yes Bank-JC Flowers ARC: Sources RBI rejects appointment of Akash Suri as CEO of Yes Bank-JC Flowers ARC: Sources
Yes Bank shares suffer sharp losses after Q4 results — what's worrying investors? Yes Bank shares suffer sharp losses after Q4 results — what's worrying investors?

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x