 "Ravneet Gill takes charge as YES Bank's CEO; stock up 3%")
Shares of YES Bank was up 3 per cent to Rs 238 on the BSE on Friday after the private sector lender said that Ravneet Gill has joined as Managing Director & Chief Executive Officer (MD & CEO) with effect from today, March 1, 2019.
YES Bank was the largest gainer in the benchmark index S&P BSE Sensex, which was up 0.55 per cent at 36,064 at the fag-end of the session.
Since February 13, 2019, the stock of YES Bank has rallied 41 per cent from level of Rs 169 after the bank said the Reserve Bank of India (RBI) found no divergence in asset classification and provisioning done by the lender during financial year 2017-18 (FY18). In comparison, the benchmark index Sensex has risen 1 per cent during the same period.
On January 24, the lender said it has received RBI approval for its new MD & CEO, Ravneet Singh Gill for him to join on or before March 1, 2019.
“We view this development as a positive given that the market has been skeptical about the underlying quality of YES Bank’s book. No divergence along with the new CEO announcement should allay incremental concerns on the stock,” analysts at JP Morgan said in a report dated February 14, 2019.
"We rate Yes Bank as a Neutral as we foresee the bank’s valuation as being range-bound until issues surrounding leadership and equity-raising get resolved. Yes’s loan growth, we believe, will moderate in FY20 as the base effect builds up. Further, given the unusual set of circumstances around the CEO’s (Rana Kapur) departure, the market may question the sustainability of credit costs and NPLs. RBI's divergence report and a smooth leadership transition could help address that," it added.
YES Bank was the largest gainer in the benchmark index S&P BSE Sensex, which was up 0.55 per cent at 36,064 at the fag-end of the session.
Since February 13, 2019, the stock of YES Bank has rallied 41 per cent from level of Rs 169 after the bank said the Reserve Bank of India (RBI) found no divergence in asset classification and provisioning done by the lender during financial year 2017-18 (FY18). In comparison, the benchmark index Sensex has risen 1 per cent during the same period.
On January 24, the lender said it has received RBI approval for its new MD & CEO, Ravneet Singh Gill for him to join on or before March 1, 2019.
“We view this development as a positive given that the market has been skeptical about the underlying quality of YES Bank’s book. No divergence along with the new CEO announcement should allay incremental concerns on the stock,” analysts at JP Morgan said in a report dated February 14, 2019.
"We rate Yes Bank as a Neutral as we foresee the bank’s valuation as being range-bound until issues surrounding leadership and equity-raising get resolved. Yes’s loan growth, we believe, will moderate in FY20 as the base effect builds up. Further, given the unusual set of circumstances around the CEO’s (Rana Kapur) departure, the market may question the sustainability of credit costs and NPLs. RBI's divergence report and a smooth leadership transition could help address that," it added.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%