YES Bank gains 5% as bank names experts to look for new managing director

The stock was up over 5% at Rs 218, gaining 18% in past one week.

Shares of YES Bank have moved higher by 5.5% to Rs 218 on the BSE after the board of private sector lender inducted TS Vijayan, former chairman of Insurance Regulatory and Development Authority of India (IRDAI) and Life Insurance Corporation of India (LIC), and OP Bhatt, former CMD of State Bank of India (SBI), as external experts in the committee.

“The committee also comprises three existing board members of the Nomination & Remuneration Committee — Brahm Dutt, chairman and independent director, Mukesh Sabharwal, independent director and Subhash Kalia, non-executive non-independent director, along with the two external experts,” YES Bank said in a regulatory filing on Friday after market hours.

The bank said it has invited proposals from global leadership advisory firms and will finalise the company in the committee’s first meeting, which is scheduled to be held on October 11.

In past one week, YES Bank has gained 18% after the bank on October 1, said it is fully geared up for the succession plan for the post of its managing director (MD) and chief executive officer (CEO) and it will finalise two external experts for search committee by October 7.

YES Bank’s stock had fallen drastically in the month of September, as there is uncertainty regarding its succession plan since Kapoor’s tenure was cut. The stock hit a 52-week low of Rs 166 on September 29, 2018, on the BSE in intra-day trade.  It tanked 47% in the month of September, as compared to a 6% decline in the S&P BSE Sensex. The stock touched an all-time high of Rs 404 on August 20, 2018.

At 11:10 am: YES Bank was up 5% at Rs 216, the largest gainer among the S&P BSE Sensex index. A combined 19.26 million equity shares changed hands on the counter on the NSE and BSE so far.