Yes Bank tumbles on buzz director resigns citing governance issue

Yes Bank fell 4.76% to Rs 45.05 after the media reported that Uttam Prakash Agarwal resigned as an independent director of the bank.

Uttam Prakash Agarwal was appointed as an independent director on the board of Yes Bank with effect from 14 November 2018 for a period of 5 years. The media reported that Agarwal's early resignation was due to corporate governance concerns at the bank.

Meanwhile, a foreign broker slashed the target price for Yes Bank to Rs 25 given the delay in capital raising and elevated asset quality stress.

Last month, Yes Bank said its board is willing to consider $500 million offer of Citax Holdings and Citax Investment Group. Meanwhile, the bank also said that the binding offer of $1.2 billion submitted by Erwin Singh Braich / SPGP Holdings also continues to be under discussion. The bank said it will continue to evaluate other potential investors to raise capital upto $2 billion.

The bank's board will meet today, 10 January 2020, to consider fund raising by issuing equity shares/depository receipts/convertible bonds/debentures/warrants/any other equity linked securities, through permissible modes, subject to necessary shareholders/regulatory approvals, as applicable.

Shares of Yes Bank are banned from trading in NSE's F&O segment after the security crossed 95% of market wide position limit.

The stock has fallen 10.88% in the past one month. On the technical front, the stock's RSI (relative strength index) stood at 38.612. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at Rs 57.27 and its 200-day moving average (DMA) placed at Rs 107.63, both of which would serve as a resistance levels in the upcoming trading sessions.

Yes Bank reported a net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. Total income fell 4.3% to Rs 8,332.21 crore in Q2 September 2019 over Q2 September 2018.

Yes Bank has pan-India presence covering 53 metro, 29 states and 7 Union Territories. The bank with 1120 branches, 1456 ATMs across the nation has an employee head count of 21,136 as of 31 March 2019.

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