Yes Bank shares tumble over 8% after RBI appoints R Gandhi as extra director; market-cap drops by Rs 2,873 cr
In a uncommon transfer, the Reserve Bank of India appointed its former deputy governor R Gandhi on the board of the financial institution.
“This is to inform you that the Reserve Bank of India vide its letter dated May 14, 2019 informed that in exercise of powers conferred under sub- section (1) of Section 36AB of the Banking Regulation Act, 1949, appointed R Gandhi, Ex Deputy Governor, Reserve Bank of India as additional director on the board of the bank for a period of two years with effect from May 14, 2019 to May 13, 2021 or till further orders, whichever is earlier,” Yes Bank stated in a regulatory submitting.
The scrip tumbled 8.01 p.c to shut at Rs 143.65 on the BSE. During the day, it plummeted 8.74 p.c to Rs 142.50 — its 52-week low.
At the NSE, the shares tanked 8.27 p.c to shut at Rs 142.95.
The firm’s market valuation declined by Rs 2,873.42 crore to Rs 33,275.58 crore on the BSE.
The scrip was the worst hit among the many frontline firms on each the Sensex and Nifty.
Commenting on Yes Bank hitting 52-week lows, Mustafa Nadeem, CEO, Epic Research stated, “Prices are in a bearish trend. Since the last few quarters stock has been in the news due to concern over its balance sheet, asset quality, exposure to IL&FS, directors and now RBI appointing an additional director for two years.”
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