Market

Yes Bank shares plunge 30% as CEO Rana Kapoor's tenure cut worries investors

Updated : September 21, 2018 11:01 AM IST

At 9.31 am, Yes Bank shares traded at Rs 251.70, recovering from the day's low, but still down by 21.1 percent.

More than 78 million shares changed hands in early trade, over 3.5 times the 30-day average of 22.3 million shares a day.

Yes Bank shares plunge 30% as CEO Rana Kapoor's tenure cut worries investors

Yes Bank shares trounced in Friday's trade, plunging nearly 30 percent, as the news of CEO Rana Kapoor's term reduction didn't go down well with the investors.

Yes Bank stock hit a 52-week low of Rs 218.10 after the Reserve Bank of India cut short the lender's managing director and chief executive officer Rana Kapoor's tenure to January 31, 2019.

The central bank had, on August 30, given its nod for the extension of Kapoor's term as CEO and MD.

"We believe this is a big negative for Yes. Mr Kapoor was central to the bank’s business strategy. His absence will slow down loan and fee growth for the bank which could lead to a sharp fall in valuations," analysts at IDFC Securities wrote in a note.

At 9.31 am, Yes Bank shares traded at Rs 251.70, recovering from the day's low, but still down by 21.1 percent. More than 78 million shares changed hands in early trade, over 3.5 times the 30-day average of 22.3 million shares a day.

For the week, Yes Bank shares have lost over 21 percent, while on an annual basis, the stock has slumped a little over 20 percent.

Meanwhile, equity indices started stronger on Friday amid positive global cues. The NSE Nifty50 traded at 11,322.25, higher by 88 points, or 0.78 percent at 9.35 am. The BSE Sensex surged by 283.20 points, or 0.76 percent, to trade at 37,404.42.

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