Yes Bank share takes steep fall after RBI asks Rana Kapoor to step down as CEO

Shares of the private bank were trading at Rs 256.15 on Bombay Stock Exchange (BSE) which was 19.58 per cent down compared to its last close.

The stock opened at per cent down from previous day and went on track for their worse in early trade. (Image: PTI)

Share of private lender Yes Bank fell dropped by 34 per cent in the opening trade on Friday morning. Yes Bank shares witnessed the steepest performance since their market debut. According to reports, shares of the private bank were trading at Rs 256.15 on Bombay Stock Exchange (BSE) which was 19.58 per cent down compared to its last close. This callous loss in Yes Bank shares comes after the Reserve Bank of India (RBI) asked Rana Kapoor to step down as bank’s managing director and CEO. The stock opened at 10 per cent down from previous day and went on track for their worse in early trade. Kapoor has been the MD and CEO of Yes Bank since its inception in 2004 and had sought for an extension of three years till August 2021. However, the RBI did not agree to extend his stint and gave him extension till January 2019. “Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD & CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on September 25, 2018 to decide on the future course of action,” a recent letter issued by YES Bank read. Bank’s shareholders, in a meeting earlier in June, agreed to re-appoint Kapoor’s extension request which was then subject to final approval from the RBI. His present term ended on August 31, 2018 but RBI has allowed him to continue till further notice. Kapoor was one of the founding members of YES Bank along with Ashok Kapur who passed away in 2008. As a promoter, Kapoor and his family own more than 10 per cent stake in the bank. Not just YES Bank, the RBI earlier this year denied a similar extension request from Axis Bank CEO Shikha Sharma too. According to a report by PTI, banking sector has seen a hike in regulatory scrutiny over past few years as the RBI has tried to push for appropriate recognition of bad loans.