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10 Dec 2018, Edition - 1245, Monday

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Why YES Bank stock is the top Sensex, Nifty gainer today


The YES Bank stock rose in early trade today after credit ratings agency ICRA said the overall long term issuer ratings have been retained at AA plus. There has been no adverse impact on YES Bank’s deposit base and liquidity profile post recent developments, ICRA said. Sentiments also improved amid a report which said the lender will meet RBI deadline to appoint a new CEO. Current CEO Rana Kapoor’s tenure ends on January 31, 2019.

The stock gained up to 6.9% to 204.50 on the BSE. The large cap stock has gained after three days of consecutive fall and opened with a gain of 2.74% at 196.55. It is the top Sensex and Nifty gainer today. On Nifty, the stock rose 5.71% to 201.90.

At 9: 44 am, the stock was trading 5.91% or 11.30 points higher at 202.60 on the BSE.

The stock is still down 35.65% since the beginning of this year and lost 33.84% during the last one year.

The stock is trading below its 50-day and 200-day moving average of 257.82 and 328.70.

Of late, the stock has been facing pressure amid a flurry of negative news. On Friday, the stock closed 7.14% lower at 191.30 on the BSE after former SBI chairman OP Bhatt quit the panel set up by the private lender to find a successor to its MD and CEO Rana Kapoor.

Bhatt, was an external expert on the Search and Selection Committee (S&SC) formed to find a successor to the bank’s MD and CEO Rana Kapoor whose term ends in January 2019.

He resigned from the committee as “there may be a potential conflict of interest”, the bank said.

Bhatt is under CBI’s scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya.

On Wednesday, bank’s non executive chairman Ashok Chawla tendered his resignation from the bank’s board following his name appearing in a CBI chargesheet in the Aircel-Maxis case.

Representations were being made by shareholders and stakeholders to the bank as well as regulators like Sebi questioning his continuance on the bank’s board after being named in chargesheet filed in Aircel-Maxis case by the premier investigating agency in July.

The RBI restricting the term of Rana Kapoor at the helm, and resignation of non-executive chairman Ashok Chawla as his name figured in a CBI chargesheet filed in the Aircel-Maxis case have also affected the stock.

The Reserve Bank has asked the private sector lender to find a replacement for its founder MD and CEO by January 31.

Last month, Yes Bank had said the search panel had finalised the potential candidate profile.

Kapoor’s term was curtailed by over two years by RBI for unspecified reasons and a bank request for extension of his term beyond January 31, 2019 was also rejected by the regulator. The RBI’s refusal came even after the appointment committee of the central bank had reportedly cleared his three year-term.