INSUBCONTINENT EXCLUSIVE:
Mumbai: Jittery investors rushed to dump Yes Bank shares on Friday after the Reserve Bank of India said
founder Rana Kapoor could only
stay on as managing director and CEO until the end of January next year.
Yes Bank plunged 36% before recouping some losses to end at
₹227.05 on the BSE, down nearly 29%, the most it has dropped in a day and the lowest the stock has closed in about two years.
“Rana
Kapoor was credited with building up the bank from the beginning,” said Suresh Ganapathy, head of financial services research at
Macquarie, adding that his presence was deemed essential to raise capital for growth
“But bank fundamentals are unlikely to change due to any individual
Rather, it is an opportunity for long-term investors to accumulate the stock.” Macquarie has maintained its buy call on the stock.
The RBI
move on Wednesday came after it determined that Yes Bank had understated bad loans
Similar action had previously been taken with regard to Axis Bank by the regulator.
Friday’s crash — the markets were shut on Thursday
for a holiday — came on the back of concerns that Kapoor’s imminent departure would erode Yes Bank’s standing.
For example, it raised
₹3,042 crore through 10-year bonds offering 9.11% last Monday
Buyers are said to have included the Life Insurance Corp
