In a month's time the Yes Bank stock has fallen from levels of Rs 404 to Rs 225, implying a huge correction of near 40 per cent.

The huge fall has come, following a decision of the Reserve Bank of India to extend the term of CEO, Rana Kapoor only till Jan 31, 2019. The board had recommended a 3-year extension, which leaves one with a pertinent question: Does this mean that an institution cannot be run as efficiently, if the existing CEO quits?

That question apart, the other other question is: Should you be buying into the stock, following the crash of Yes Bank by 40 per cent. Let's see what brokerages have to say.

The worst downgrade for the stock has come from IDFC Securities, which sees a target price of Rs 230 on the stock. The shares are already below these levels.

According to IDFC Securities the cut in Rana Kapoor's tenor is a very big negative for the bank as it will slow down loan and fee growth and this could also impact the bank's ability to raise high net worth deposits.

Brokerage firm Citi has also cut the rating on the stock with a target price to Rs 270 from Rs 440 per share. That is indeed a steep cut as well, though the shares at Rs 225 are well below those levels.

Citi feels that the time period of 4 months to find another candidate is difficult for the bank. Brokerage firm Macquarie has an outperform rating on the stock.

In fact, the brokerage firm has set a price target of Rs 425 with an expected potential upside of 33 percent on the stock.

Goldman Sachs has a target price of Rs 300 on the stock and has downgraded to Neutral from buy.

Markets are about risk taking

Stock markets are all about taking risks at the right time. It's impossible to predict future outcomes. If the new CEO is able to guide the bank, like Rana Kapoor did, the stock than is available dearth cheap at 10 times, one year forward earnings.

One report in the Bloomberg Quint says that the implication of the Articles of the Bank could be that Kapoor will have the ability to stay on the board of Yes Bank even if he has to step down as CEO. This means that he could guide the bank in the future. Really it is uncertain whether RBI would allow this. At the moment, things are a lot uncertain.

However, if you are willing to take a risk, who knows, you may end-up making some decent money.

Remember, this is a stock that is heavily owned by domestic institutions and Foreign Portfolio Investors, so it could add to enormous volatility in the days to come.