Yes Bank shares decline 8%
Shares of Yes Bank tanked 8% on Wednesday, a day after the Reserve Bank of India (RBI) appointed former deputy governor R. Gandhi as additional director in the bank.
Shares of Yes Bank ended at ₹143.65, down 8.01% from its previous close.
The lender’s market cap declined by ₹2,873.42 crore to ₹33,275.58 crore on the BSE.
The scrip was the worst hit among the frontline companies on both the Sensex and Nifty.
Mr. Gandhi has been appointed for two years on the board the bank, with immediate effect.
“RBI’s move to nominate an additional director on the Board of Yes Bank brings back concerns of governance issues once again for the bank,” said Lalitabh Shrivastawa of broking firm Sharekhan by BNP Paribas.
“Coming on the back of recent downgrade in earnings and tight capital adequacy situation at the bank, the stock can further get de-rated owing to uncertainties on the growth outlook ahead. We have cautious view on the stock,” he added.