Yes Bank Shares Hit 2.5-Year Low On Rana Kapoor's Tenure Crisis
Yes Bank shares touched their two-and a half-year low levels on Friday, before ending over 9 per cent lower, amid uncertainty around the tenure of the lender's CEO, Rana Kapoor. The private sector bank's board had said earlier this week that it would seek approval of the Reserve Bank of India for an extension to his term beyond January, as it needs more time to identify and groom a successor. Friday's fall takes the total plunge in Yes Bank shares to more than 42.5 per cent since the RBI directive on September 21.
Mr Kapoor said on microblogging site Twitter on Friday that he was committed to the interests of Yes Bank and its stakeholders.
"In this leadership transition at Yes Bank, I continue to remain fully committed to the interests of the Bank and all its stakeholders. I will be fully guided by the Board of Directors of Yes Bank and the Reserve Bank of India," Mr Kapoor said.
"I will eventually bequeath my Yes Bank promoter shares to my 3 daughters and subsequently to their children, with a request in my will stating not to sell a single share...," Mr Kapoor tweeted from his Twitter handle @ RanaKapoor_.
In this leadership transition at @YESBANK, I continue to remain fully committed to the interests of the Bank and all its stakeholders. I will be fully guided by the Board of Directors of YES BANK and the Reserve Bank of India
September 28, 2018Even after I demit office as MD & CEO of YES BANK, I will never ever sell my @YESBANK shares
September 28, 2018I will eventually bequeath my @YESBANK Promoter shares to my 3 daughters and subsequently to their children, with a request in my Will stating not to sell a single share, as Diamonds are Forever!!
September 28, 2018Diamonds are Forever: My Promoter shares of @YESBANK are invaluable to me
September 28, 2018On Friday, Yes Bank shares touched their fresh 52-week low of Rs 166.15 in intraday trade on the Bombay Stock Exchange (BSE), before closing at Rs 183.45, down Rs 19.75 or 9.72 per cent. On the National Stock Exchange (NSE), Yes Bank shares hit a 52-week low of Rs 165, before ending at Rs 184.10, with a loss of Rs 19.15 or 9.42 per cent.
As of end-June, Mr Kapoor had a direct 4.3 per cent stake in Yes Bank, according to Thomson Reuters Eikon data.
Earlier this week, Yes Bank said that it would seek the nod of the central bank to extend Mr Kapoor's tenure until September 30, 2019. The central bank has only allowed Mr Kapoor to stay at the helm of affairs till January 31, 2019.
Yes Bank share price has declined a total of 46.5 per cent this month. Analysts attribute the sharp losses in the stock to uncertainty around extension of Mr Kapoor's current tenure, which ends on January 31.
"The bank's woes will continue till there is uncertainty around it," R Sreesankar, co-head-institutional equities at Prabhudas Lilladher, was quoted as saying in a report by news agency Reuters.
On Thursday, in response to a query by the NSE, Yes Bank denied any dealings with Three Sisters Family Office, the investment vehicle run by Mr Kapoor's three daughters, stated the Reuters report.
Yes Bank is the country's fifth-largest private sector bank in terms of assets. (With Reuters inputs)
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