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Last Updated : Apr 25, 2019 12:08 PM IST | Source:

Yes Bank climbs 4% on reports of management rejig ahead of Q4 earnings

The private sector lender, which will declare its March quarter and full year earnings on April 26, is expected to report fall in profit

Moneycontrol News @moneycontrolcom
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Yes Bank shares rallied 4 percent intraday on April 25 after a media report indicated that there could be some rejig at top management level. The bank is also scheduled to announce results on April 26.

The stock was quoting at Rs 249.00, up Rs 9.85, or 4.12 percent on the BSE, at 1116 hours IST.

Yes Bank CEO Ravneet Gill is planning to replace 14 top executives, including some of former CEO Rana Kapoor's aides, the Mint said quoting sources.

"RBI advised the board and Gill to review the decisions taken by Rana Kapoor both in terms of business and key management-level hires," a source told the paper.

The move is an attempt to improve corporate governance, risk management and credit disbursal policies at the bank.

In the list of executives who might be replaced are Rajat Monga, Group President; Rajiv Anand, Group President and National Head of Corporate Finance; Raj Ahuja, Group CFO; Kumar Padmanabhan, COO; and Ashish Agarwal, Chief Risk Officer.

Moneycontrol could not independently verify the news.

Meanwhile, the private sector lender, which will declare its March quarter and full year earnings on April 26, is expected to report fall in profit.

"Growth is likely to moderate from the higher levels seen in earlier quarters, albeit still much higher than industry; Asset quality trends to be benign. The strategy under new management will be key monitorable," said Edelweiss which expects profit to decline 0.3 percent and NII to grow 13.3 percent YoY.

Kotak, which sees profit falling 28 percent and NII growing 18.8 percent, said it expects loan growth to decelerate to around 15 percent from around 40 percent.

Revenue pressure will remain high due to weak fee income growth (sharp decline) and NIM pressure (higher funding costs), it added.

Kotak said commentary from the new MD & CEO would be crucial to understand his views on the bank and steps taken to change its business model.

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First Published on Apr 25, 2019 12:08 pm
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