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Yes Bank Shares Extend Slide for a Second Day, Plunge Over 10%

Yes Bank Ltd shares plunged over 10% in intraday trade on Tuesday, i.e. 13 August, after falling 8% in the previous session. The stock price corrected even as the private sector lender reportedly raised $275 million by selling shares to domestic and foreign investors in a qualified institutional placement (QIP) offer that closed on 9 August.

At 2:32 pm, the Yes Bank stock was trading at Rs 74.60, down 9.2%, after hitting an intra-day low of Rs 73.40. The stock has lost around 78% of its value in the past one year.

According to media reports, Yes Bank’s QIP was subscribed three times. The capital raising committee of the bank’s board will now meet on 14 August to consider and approve the issue price for the QIP and the final discount. Yes Bank had set a floor price of Rs 87.90 apiece for the share sale and the committee stated that it may offer a discount of not more than 5% on the floor price.

In a separate development, Yes Bank over the weekend announced that it has appointed Anurag Adlakha as the bank’s group chief financial officer and Raj Ahuja as group chief strategy officer. Adlakha is a chartered accountant and has been the CFO for past 19 years with Standard Chartered Bank and HSBC.

Raj Ahuja, who has served as senior group president in the bank, will now be re-designated as group chief strategy officer and will be responsible for leading the strategy, planning and projects function of the bank.

The bank had earlier on Thursday said that it is in the process of appointing certain new key managerial personnel, including the chief financial officer, chief compliance officer, and chief operating officer.

Though Yes Bank did not specify any reason for the top management rejig, the move was 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 RBI last year when it had ordered the bank’s founding CEO Rana Kapoor to end his tenure.

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Source: News18