YES Bank falls 7% after Ashok Chawla resigns as non-executive chairman

Topics YES Bank

Ashok Chawla
Shares of private sector lender YES Bank slipped as much as 6.67 per cent to Rs 207.65 apiece on the BSE in the early morning trade on Thursday after Ashok Chawla, the bank's non-executive chairman, stepped down with immediate effect, following his name appearing in Aircel-Maxis controversy. Independent Director Vasant Gujarathi has also quit, citing personal commitments.

The bank's board has appointed Uttam Prakash Agarwal as additional director (Independent) for five years, subject to shareholder’s approval. READ MORE

YES Bank is also in the process of selecting a new managing director and chief executive, to succeed Rana Kapoor, the incumbent one. In September, the Reserve Bank of India had rejected its request to grant another three-year term commencing September 1 to Kapoor. The central bank later directed that a successor to Kapoor be appointed by February 1, 2019. 

Shares of the private sector lender have been under pressure ever since the RBI trimmed Rana Kapoor's term as Yes Bank CEO in September till 31 January 2019. In the past two months, the stock has fallen 30 per cent from Rs 319 on September 17 to Rs 223, as of November 14, 2018. 

The private sector lender posted a 3.8 per cent fall in net profit for the September quarter at Rs 9.64 billion against Rs 100.27 billion in the year-ago period, as provisions more-than-doubled over the year-ago quarter.

At 09:46 am, shares of the bank were trading at Rs 209 apiece on BSE, down 6 per cent. 

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