Yes Bank Ltd shares dropped over 9% in afternoon trade on Friday, i.e. 9 August, after the lender informed stock exchanges on Thursday evening that it was is in the process of appointing certain new key managerial personnel.
At 2:38 pm, Yes Bank shares were trading at Rs 82.55, down 7.5%, after hitting an intra-day low of Rs 81.15. Notably, the stock has crashed nearly 77% in the last one year.
Yes Bank said it would soon be appointing new chief financial officer (CFO), chief compliance officer (CCO) and chief operating officer (COO). Currently, these top positions are occupied by former MD and CEO Rana Kapoor’s trusted aides.
Though Yes Bank did not specify any reason for the top management rejig in the regulatory filing, the move is seen as a part of remedial measures taken by new CEO Ravneet Gill to fix lapses in corporate governance and credit disbursal policies, as noted by the Reserve Bank of India (RBI) last year when it had ordered the bank’s founding CEO Rana Kapoor to end his tenure.
Yes Bank’s current COO Kumar Padmanabhan joined the bank in 2015 and was part of the core team that helped set up the lender’s operations in June 2004. Rakesh Mehran is currently the CCO and has been associated with Yes Bank since 2007. Raj Ahuja, who is currently the CFO, took over his role from Rana Kapoor’s right-hand man Rajat Monga in April last year, and was reporting directly to the then-MD and CEO.
Meanwhile, Yes Bank Ltd on Thursday also said that it has launched a qualified institutional placement (QIP) offer to raise capital from institutional investors. According to various media reports, the bank is looking to raise around Rs2,000 crore through the institutional share sale.
Yes Bank has set a floor price of Rs 87.90 apiece for the share sale. “We intend to use the net proceeds for meeting our capital requirements under Basel III norms, ensuring adequate capital to support growth and expansion, including enhancing our solvency and capital adequacy ratio, refinancing of our Tier 1 and Tier 2 bonds and for general corporate purposes,” the bank said in its filings with stock exchanges.
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Source: News18