Yes Bank falls 3% after another board member resigns
A day after resignation of non-executive director Ajai Kumar, non-executive independent director Mukesh Sabharwal has stepped down from the Bank's board
June 12, 2019 / 11:25 AM IST
Yes Bank shares dropped more than 3 percent intraday on June 12 after two directors decided to resign from their post in the current week.
The stock lost 11 percent in the last five sessions and 42 percent in three months. It was quoting at Rs 136, down Rs 3.30, or 2.37 percent on the BSE at 1002 hours IST.
A day after the resignation of non-executive director Ajai Kumar, non-executive independent director Mukesh Sabharwal also stepped down from the Bank's board on June 11.
"We would like to inform that Lt. Gen Mukesh Sabharwal (Retd), non-executive independent director of the Bank has tendered his resignation on June 10, 2019," Yes Bank said in its BSE filing.
The Bank further said Sabharwal has mentioned that he wants to devote quality time on his academic pursuits and hence has tendered his resignation. "He has confirmed that there is no other material reason other than those provided," Yes Bank said.
On June 10, Ajai Kumar, a non-executive director of the bank who was made the bank's interim MD and CEO for one month after Rana Kapoor's exit, had resigned from the board due to personal reasons.
"This is the fifth board resignation since November 2018. The resignation of board members adds to a growing number of board member exits seen since last year. This, coupled with the recent rating downgrades, continues to weigh on stock performance. It is a concern and we are not advising fresh investment at these levels," Sharekhan said.
Recently rating agency Moody's Investors Service placed Yes Bank's foreign currency issuer rating of Ba1 under review for a potential downgrade. It also placed the Bank's long-term foreign and local currency bank deposit ratings of Ba1, foreign currency senior unsecured MTN programme rating of (P)Ba1, among other instruments under review.Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.