Yes Bank shares: Shares of India’s major private sector lender Yes Bank surged by 6% in the morning trade, after the firm announced yesterday that it has appointed headhunter Kon Ferry to assist in finding CEO Rana Kapoor’s successor. Yes Bank shares zoomed more than 6% to hit an intra-day high of Rs 254.4. The bank had invited proposals from four global leadership advisory firms specialising in banking and finance sector to assist its five-member expert committee in identifying a new CEO to succeed Yes Bank.
“Based on assessments and presentations made by these global advisory firms, the Search and Selection Committee has mandated Korn Ferry to assist the committee in evaluating candidates,” Yes Bank said in a stock exchange filing. Notably, this is the fourth consecutive day of rally in Yes Bank shares.
Earlier, Yes Bank shares had plunged by nearly 50% from their 52-week highs after RBI’s decision to cut short CEO Rana Kapoor’s tenure. On September 17, RBI curtailed the CEO’s term to January 31, 2019 without citing any reasons. “While the near term uncertainty will remain till the new management takes charge and enunciates the business strategy, we believe that post sharp correction the stock is trading at reasonable valuations. We maintain our BUY rating with a target price of Rs 350,” Motilal Oswal said in a note.
However, now Yes Bank shares have recovered from significantly from their 52-week lows of Rs 165. The firm has also been in the news as media reports have said that YES Bank’s two promoters – Rana Kapoor and Madhu Kapur in talks to reach an out-of-court settlement. . The move is said to remove uncertainties surrounding the bank’s succession plans.