Yes Bank shares, which have seen severe price damage over the last few months, may once again fall on Monday over governance related issues. Apart from this, a rejection of the proposal to raise funds from Erwin Singh Braich/SPGP Holdings may also weigh on the stock.
Uttam Prakash Agarwal, an Independent Director and Chairman of the Audit Committee of the Board of the Bank resigned citing certain governance issues.
"YES Bank Limited would like to intimate that it has received the resignation of Mr. Agarwal. In his resignation letter (as enclosed), Mr. Agarwal has made certain observations on the Bank's governance and the same shall be duly examined by the Board," the bank said .
Yes Bank has also said that was reviewing the 'fit and proper' status of Mr. Agarwal as directed by the Reserve Bank of India. In this respect, it had obtained legal opinions from eminent jurists.
"These opinions were to be considered by the Nomination and Remuneration Committee of the Board ("NRC")/ the Board of the Bank in their meetings scheduled for today, i.e., January 10, 2020. However, prior to the commencement of the proceedings of these meetings, the Bank received the resignation of Mr. Agarwal," it stated.
Apart from this, what could put pressure on the stock is the decision of the board to reject the proposal of Erwin Singh Braich/SPGP Holdings for a stake in the bank.
Yes Bank shares dropped a huge 5.70 per cent on Friday to end the day at Rs 44.70. A further drop in the price from these levels is not ruled out.
Fund raising remains extremely important for the bank as it looks to grow.