Shares in Yes Bank have fallen more than 5 per cent in trade today, even as the benchmark indices have hit a new record high.
The share of the bank were down 4.70 per cent at Rs 42.70, after dropping almost 6 per cent in trade to Rs 43.40.
Why Yes Bank shares have fallen?
One of the board members of Yes Bank resigned on Friday, ahead of the board meeting citing poor governance standards. "YES Bank Limited would like to intimate that it has received the resignation of Mr. Agarwal. In his resignation letter, Mr. Agarwal has made certain observations on the Bank's governance and the same shall be duly examined by the Board," the bank said in a release to the exchanges.
Apart from this, Yes Bank also rejected a proposal to raise funds from Erwin Singh Braich/SPGP Holdings which also weighed on the stock. It's important to remember that Yes Bank is looking at raising capital quickly for ambitious growth plans, however, so far nothing concrete has materialized.
Much of the future of Yes Bank hinges on its ability to raise capital quickly. There was speculation that one of the top private sector banks in the country could even look at taking over the bank. The management of the bank has, however, termed this as nothing but speculation.