Yes Bank shares sink 34%; m-cap erodes by Rs 14,452 crore as Reserve Bank of India trims Rana Kapoor's term as CEO
The Yes Bank stock was the top loser among the blue-chips on both the key indices during the morning trade
New Delhi: Shares of Yes Bank cracked 34 percent to hit a one-year low Friday after the Reserve Bank curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.
After a weak opening, shares of the company further plunged 34 percent to Rs 210.10 -- its 52-week low -- on BSE.
On NSE, shares of the company plunged 31.67 percent to hit its one-year low of Rs 218.10.
The stock was the top loser among the blue-chips on both the key indices during the morning trade.
The company's market valuation slumped Rs 14,451.82 crore to Rs 59,261.15 crore on BSE.
Stock exchanges were closed Thursday on account of a public holiday.
The Reserve Bank on Wednesday curtailed the term of Yes Bank's founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.
Kapoor, who has been managing director and CEO since the bank's inception in 2004, had sought a three-year extension till 31 August, 2021. However, the sector regulator did not agree to the request and permitted him to continue only till January 2019.
"Reserve Bank of India has vide letter dated 17 September, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD and CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on 25 September, 2018 to decide on the future course of action," the bank said in a statement.
By closing bell, Sensex witnessed a massive surge of 872.73 points or 1.65 percent to close at 53,823.36. Meanwhile, Nifty closed at 16,130.75 after jumping up by 245.60 points or 1.55 percent
Both the BSE Sensex and NSE Nifty50 closed modestly lower on Friday after investors offloaded banking, finance and metal stocks in the last hour of trade amid sluggish global cues
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At the clsoing bell, the BSE Sensex was up 209.36 points or 0.40 percent at 52,653.07 while the NSE Nifty50 gained 69.05 points or 0.44 percent to close at 15,778.45