YES Bank’s shares fell 12.96 per cent on the BSE on Thursday to close at ₹117.20 apiece. This could be a reaction to a report by Swiss brokerage UBS, which sharply cut its price estimate on the stock, saying the risk of NPAs is higher than current expectations.
A Reuters report said UBS cut the YES Bank price target to ₹90 from the earlier ₹170, marking a 47 per cent fall, and maintained a “sell” rating.
Meanwhile, YES Bank founder Rana Kapoor said on Thursday he does not want to return to the board, and expressed full confidence in the new MD and CEO Ravneet Gill.
“The Rana Kapoor promoter group fully supported and voted in favour of all 19 resolutions at the 15th AGM on June 12. The YES Bank leadership team, MD and CEO Ravneet Gill, and board of directors have my fullest support,” Kapoor said in a series of tweets.
Financial strategy
At the AGM on Wednesday, shareholders of YES Bank were keen on knowing the bank’s strategy to improve its financials, as well as the plans of the top management, although there were not too many questions on the re-entry of Kapoor. “Downgrades were also discussed, but it is up to the rating agencies,” said Dinesh Bang, a CA and a shareholder of YES Bank who attended the AGM.