Troubles mount for embattled lender YES Bank
YES Bank’s audit committee chairman Uttam Prakash Agarwal resigned as independent director citing deteriorating corporate governance standards at the private lender.
YES Bank’s audit committee chairman Uttam Prakash Agarwal resigned as independent director citing deteriorating corporate governance standards at the private lender.
Trouble hit the private lender once again after ratings agency Moody’s cut the bank’s credit rating and assigned a negative outlook to the company. YES Bank shares dived 10% on the BSE on Friday .
No respite for controversy-hit YES Bank after the RBI finds the private sector lender guilty of under-reporting bad loans, again, casting a shadow on the bank’s asset quality and profitability in Q3.
The private lender receives a binding offer of $1.2 billion from a global investor; shares rally as much as 35% before closing the day with 24% gain at ₹70.45.
The private lender’s 106% recovery in share price from its 52-week low in early October could be a value trap for investors.
An analysts call an hour before the start of trading after an unprecedented disclosure of key numbers by the bank helps to arrest share price fall.
The private lender’s shares gained 13.5% on Wednesday.
Worst quarterly performance in 20 quarters; net profit plunges to ₹113.8 crore from ₹1,260.36 crore a year ago due to higher provisioning.
The fifth-largest private lender reported a loss of ₹1,506.6 crore in the March quarter, its first in 55 quarters since its listing, on account of bad loans.
The current chief of Deutsche Bank in India will take charge at YES Bank on or before March 1, as the market cheers the end of uncertainty around the bank’s future leadership