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NEW DELHI: Shares of YES Bank plunged 34 per cent on BSE on Friday, hitting its 52-week low of Rs 210.10 after the RBI asked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019.
The news has apparently upset investors and most top brokerages have downgraded the stock after RBI's directive.
Citi has reportedly downgraded the stock to ‘sell’ from ‘buy’ and IDFC Securities has lowered its rating on the company to ‘neutral’ from ‘underperformer’.
Citi, Edelweiss and IDFC Securities have cut the target price on YES Bank between 17.2 per cent and 38.6 per cent.
The bank’s board and shareholders had approved another three-year term for Kapoor.
The exit of Kapoor, who co-founded the bank in 2004 and plays an active role in it, could impact the loan and fee growth, and may potentially affect the bank’s capital raising plans, ET reported, quoting brokerages.
The stock, however, managed to recover a little and was trading 20.46 per cent down at Rs 253.35 around 9:30 am.
The BSE Sensex was 293 points, or 0.80 per cent, up at 37,414, while the Nifty was 73 points, or 0.65 per cent, up at 11,307 around that time.
Shares of the company opened at Rs 286.65 and touched intraday high and low of Rs 286.65 and Rs 210.10.
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YES Bank tanks 34% to hit 52-week low on Rana Kapoor's exit news
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