Business/Economy

RBI: Yes Bank faces loss of $3.1 Billion in Market Value

RBI: Yes Bank faces loss of $3.1 Billion in Market Value

Yes Bank Ltd's shares tumbled nearly a 3rd on Friday, wiping the maximum amount as $3.1 billion off its market Value. The shares of the personal sector bank settled at Rupees 257.05 on the Bombay Stock Exchange (BSE), down 28.71 per cent Friday. Shares of Yes Bank plunged the maximum amount as thirty four per cent in intraday trade today. The sharp losses in Yes Bank shares came after RBI asked the private sector bank's managing director & CEO Rana Kapoor to step down once an extended term until January 31, 2019.
Yes Bank informed the BSE during a filing post-market hours on Wednesday that the run had curtailed the term of Rana Kapoor until January 31, 2019, and asked the board to search out a replacement. The 61-year-old Mr Kapoor owns over ten per cent within the bank. Private sector bank chiefs are allowed to continue holding their posts until the age of seventy. 
In August, the bank board had given a three-year extension to Mr Kapoor and wanted the central bank's approval for constant. The bank had been found to possess under-reported non-performing assets (NPAs) by over Rupees. 10,000 large integer for 2 consecutive years, reported a leading media agency.
Rating agency Moody's on Thursday maintained its outlook on Yes Bank shares as stable. Moody's said Yes Bank can still outstrip the business in loan book growth, however additional that whereas the capital buffers square measure adequate for currently, it'll got to raise capital from the market shortly.
Some analysts say uncertainty has been already factored in affirmative Bank's stock value. "Since the August extension to Mr Kapoor's term by run, Yes Bank shares declined twelve percent till September 19 .Any level below the intraday low on Friday are often a pretty bet for a long-run investor", same Alaska Prabhakar, head of research at IDBI Capital Markets.
Meanwhile, benchmark equity indices closed on a negative note on Friday. BSE benchmark index Sensex slipped 279.62 points or 0.75 per cent to shut at 36,841.60. The broader NSE Nifty declined 91.25 points or 0.81 you must settle at 11,143.10.