Aiming to calm market nerves, after YES Bank shares saw battering in intraday trade Thursday, CEO Ravneet Gill said that the private lender will recover from the current scenario.
Aiming to calm market nerves, after YES Bank shares saw battering in intraday trade Thursday, CEO Ravneet Gill said that the private lender will recover from the current scenario. The business model of the bank is intact and there are no credit cost concerns, he also told ET Now in an interview. The credit cost of the bank is not likely to surpass 125 basis points in 2019 and no changes have been made in the bank’s FY20 guidance. “I am confident that YES Bank will bounce back,” says Ravneet Gill also told the TV news channel.
Even as some of the shareholders mentioned about fall in bank shares in the AGM held on June 12, they have complete faith in the lender’s management, he said. Some of the shareholders also asked the private lender to consider rights issue, he noted. On recent high-profile resignations from the board, Ravneet Gill said that it’s coincidental that both board members resigned at the same time. On of them resigned on personal grounds, he noted. “It’s a period of transition for YES Bank but I am very optimistic about the future of the bank,” he added. Earlier this week, the chairman of the nomination and remuneration committee Mukesh Sabharwal, and former interim CEO Ajai Kumar, resigned from their respective positions.
Meanwhile, earlier today, Rana Kapoor, the former managing director and chief executive at Yes Bank denied media reports stating that he is trying to make a comeback to the bank. He also reposed full confidence in his successor Ravneet Gill. Rana Kapoor’s tenure was rejected by the RBI owing to poor governance and loan practices, making way for Ravneet Gill to take over.
The shares of YES Bank closed the day at Rs 116.60, down 18.15 points, or 13.47 per cent on NSE today. The shares fell after global brokerage UBS sharply cut down its price target.