Yes Bank shares tumble over 8% after RBI appoints R Gandhi as additional director; market-cap drops by Rs 2,873 cr

New Delhi: Shares of Yes Bank plummeted over 8 percent on Wednesday after the RBI appointed an additional director on the board of the private sector lender. In a rare move, the Reserve Bank of India appointed its former deputy governor R Gandhi on the board of the bank. [caption id=“attachment_5595711” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “This is to inform you that the Reserve Bank of India vide its letter dated May 14, 2019 informed that in exercise of powers conferred under sub- section (1) of Section 36AB of the Banking Regulation Act, 1949, appointed R Gandhi, Ex Deputy Governor, Reserve Bank of India as additional director on the board of the bank for a period of two years with effect from May 14, 2019 to May 13, 2021 or till further orders, whichever is earlier,” Yes Bank said in a regulatory filing. The scrip tumbled 8.01 percent to close at Rs 143.65 on the BSE. During the day, it plummeted 8.74 percent to Rs 142.50 – its 52-week low. At the NSE, the shares tanked 8.27 percent to close at Rs 142.95. The company’s market valuation declined by Rs 2,873.42 crore to Rs 33,275.58 crore on the BSE. The scrip was the worst hit among the frontline companies on both the Sensex and Nifty. Commenting on Yes Bank hitting 52-week lows, Mustafa Nadeem, CEO, Epic Research said, “Prices are in a bearish trend. Since the last few quarters stock has been in the news due to concern over its balance sheet, asset quality, exposure to IL&FS, directors and now RBI appointing an additional director for two years.”