Shares of Yes Bank cracked 34% to hit a one-year low Friday after the Reserve Bank curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.
After a weak opening, shares of the company further plunged 34% to Rs 210.10 — its 52-week low — on BSE. On NSE, shares of the company plunged 31.67% to hit its one-year low of Rs 218.10. The stock was the top loser among the blue chips on both the key indices during the morning trade. The company’s market valuation slumped Rs 14,451.82 crore to Rs 59,261.15 crore on BSE. Stock exchanges were closed Thursday on account of a public holiday.The Reserve Bank on Wednesday curtailed the term of Yes Bank’s founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.
Kapoor, who has been managing director and CEO since the bank’s inception in 2004, had sought a three-year extension till August 31, 2021. However, the sector regulator did not agree to the request and permitted him to continue only till January 2019.
“Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD and CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on September 25, 2018 to decide on the future course of action,” the bank said in a statement.
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