Fri. Mar 29th, 2024
Yes-bank

Yes Bank‘s uncertain future has wiped out nearly ₹43,000 crore investor’s wealth in a time span of 5 weeks. The bank has been dealing in red since RBI reject Rana Kapoor’s reappointment till September 2021.

A media report by live mint cited that the shares of the bank have plummetted at least 49%. The declining share swiped away 50% market capitalization from ₹91,000 crore

Yes Bank was trading at ₹205.80 (-8%) on BSE in the Thursday trade. It has lost 34% since its inception. Owing to the lack of clarity about its future and delay in decision-related to the appointment of new CEO, the bank’s share has seen a sharp decline.

“The board has not been able to give a clear picture on the succession and further course for the bank. The timelines and uncertainty on approvals from RBI for both MD & CEO (should be difficult) and EDs will keep near-term stock performance muted”, quoted Moneycontrol Prabhudas Lilladher’s note.

The Yes Bank after it’s board meeting on September 25 filed a request to extend Rana Kapoor’s tenure at least till April 2019. The board meeting also pronounced to create a search committee in order to find a suitable successor to Rana Kapoor. Contrary to the current stock trend, the shares did rise owing to high expectation from the board meeting. 

Although, recent media reports suggest that the Reserve Bank of India is likely to neglect the bank’s request.

An anonymous source reported by MoneyControl said, There is no merit in seeking the extension, the bank is just buying more time. 

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