Moneycontrol Be a Pro
Get App
Last Updated : Oct 03, 2019 04:24 PM IST | Source:

Yes Bank Senior Group President Rajat Monga quits; CEO Ravneet Gill says liquidity position stable

Gill said Yes Bank has enough liquidity and the share price movement of recent days should not become a proxy for how the bank gets perceived

Parnika Sokhi @ParnikaSokhi

Yes Bank’s Senior Group President Rajat Monga, one of the key leaders during the tenure of former head Rana Kapoor, has resigned from his post, its CEO Ravneet Gill said.

In a conference call on October 3, Gill said Monga  has decided to 'move on', without sharing any further details of his exit.

Moneycontrol has learnt that Monga quit the bank in September 2019. Monga, who earlier held the post of chief financial officer, was once considered for the top position and was set to succeed Kapoor. Gill took over in January after the bank failed to obtain a tenure extension for Kapoor from the banking regulator and the latter's subsequent unplanned departure.

Gill said Yes Bank’s operating metrics and performance is 'absolutely sound' and the lender has enough liquidity. He added that Yes Bank is looking to reshape its loan book and make it more granular to focus on the retail segment.

In a bid to allay investor fears after the share slide on October 1, Gill said: “We have enough liquidity, we are very stable and the share price movement of recent days should not become a proxy for how the bank gets perceived.”

The bank, in an exceptional announcement made before the release of its quarterly results, informed exchanges that its liquidity coverage ratio was more than 125 percent as on September 30, well above the regulatory requirement of 100 percent.

Yes Bank’s shares dived 23 percent on October 1, its lowest in a decade, driven by forced sale of 10 crore equity shares, which amounted to 3.92 percent of the bank’s equity share capital. Next day, the lender informed exchanges that a large stakeholder had invoked shares pledged with it and that the pledge stands extinguished.

The stock of country’s fourth largest private bank fell for five straight sessions over the past week. Yes Bank said its employees sold shares to meet financial commitments as many had taken leverage to exercise their stock options. It should not be seen as a conflict to their loyalty to the bank, Gill said.

Late last month, Kapoor’s promoter group companies -- Morgan Credits and Yes Capital -- dumped the bank’s shares raising concerns. After Kapoor's exit, Madhu Kapur, the wife of bank’s late co-founder Ashok Kapur, has become the main promoter.

Gill said stake held by the Kapur family is not under any threat. Kapur’s daughter Shagun Kapur Gogia told PTI that the family stands firmly behind Yes Bank and has complete and full faith in its the leadership and management.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Oct 3, 2019 10:29 am
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour