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Yes Bank Shares Slump By 13%, Market Cap Falls Below Rs 10,000 Crore

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On Tuesday, shares of Yes Bank Ltd fell by as much as 13.2 percent to an intraday low of Rs 36.55. In three consecutive trading sessions, the share price has fallen by over 20 percent from Thursday's close of Rs 47.40 apiece.

 

The bank's market cap has fallen below 9,800 crore amid the deterioration.

Yes Bank Shares Slump By 13%, Market Cap Falls Below Rs 10,000 Crore

Brokerages have turned bearish on the stock as uncertainty looms on the private bank's plans to raise capital. Kotak Institutional Equities lowered its price target to Rs 40 from Rs 55 and maintained a "sell" call on the stock. Morgan Stanley retained its underweight call on the stock with a target at Rs 25 per share.

On Friday, in a stock exchange filing, Yes Bank said that it will not proceed with the $1.2 billion offer by Canada-based Erwin Braich. It also lowered its total fund-raising plan from Rs 14,000 crore to Rs 10,000 crore.

The investment offer of half a billion dollars from London-based Citax will be decided upon in the next board meeting.

Further, the bank's Independent Director and Chairman of the Audit Committee, Uttam Prakash Agarwal, handed over his resignation ahead of the board meeting held on Friday.

 

Stating his reason for resignation, Agarwal said, "There are serious concerns as regards deteriorating standards of the corporate governance, failure of compliance, management practices and the manner in which the state of affairs of the Company are being conducted by Mr. Ravneet Gill- MD/ CEO, Dr. Rajiv Ubeoi- Senior Group President Governance & Controls, Mr. Sanjay Nambiar- Legal Head and Board of Directors."

Yes Bank's statement said that the bank's Board will examine the observations made by Agarwal on governance practices.

Read more about: yes bank
Story first published: Tuesday, January 14, 2020, 14:29 [IST]
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