Yes Bank shares continue to tumble, down 15% in two days amid management woes

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November 16, 2018 1:32 PM

Yes Bank shares have cracked nearly 15% in two days since the resignation of the private sector lender's non-executive chairman Ashok Chawla on Wednesday.

yes bank sharesYes Bank shares have cracked nearly 15% in two days since the resignation of its non-executive chairman Ashok Chawla on Wednesday.

Yes Bank share price plunged over 7% in trade today, extending its Thursday’s 7% fall, a day after former SBI chairman O P Bhatt resigned from the panel set up to find a successor to its MD and CEO Rana Kapoor. Yes Bank shares have cracked nearly 15% in two days since the resignation of the private sector lender’s non-executive chairman Ashok Chawla on Wednesday. The stock is down 14.56% from its Wednesday’s close at 222.50 to a low of Rs 190.10 per share on the BSE today.

Yes Bank on Thursday said Bhatt has resigned as an external expert of the ‘Search & Selection Committee’ set up to find a new CEO. “We would like to inform that Mr. O. P. Bhatt has tendered his resignation from his duties as an External Expert of the ‘Search & Selection Committee’ (‘S&SC’) with immediate effect citing that there may be a potential conflict of interest,” Yes Bank said in a stock exchange filing. The bank is searching for a new CEO by the February 1 deadline imposed by the Reserve Bank of India.

Also read: Share market LIVE updates — Sensex up 250 points, Nifty above 10,650; Jet Airways up 9%, Yes Bank slumps 7%

Earlier on Thursday, Yes Bank shares slipped by 7% after former bureaucrat Ashok Chawla resigned as non-executive chairman of the bank a day before. Chawla offered to quit as controversy was being generated on his continuance on the Board of Directors following his name appearing in a CBI chargesheet in the Aircel-Maxis case, PTI reported on Wednesday citing sources. Following the report of Chawla’s exit, the bank’s shares slipped over 9% to hit the day’s low at Rs 202.25, diving to their lowest level since November 1.

Yes Bank is currently going through a transition phase after the RBI in September refused to grant an extension to Rana Kapoor to continue as the MD and CEO. Yes Bank shares are currently down 38% since the RBI first curbed Kapoor’s term on September 19. The private bank’s scrips saw their biggest intra-day plunge in over a decade on September 21 after the RBI curtailed Rana Kapoor’s term until January 31, 2019. The shares slumped to a fresh 52-week low of Rs 165 on September 28 on the NSE.

 

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