The developments since 19 November have knocked off about 34,500 crore ($4.95 billion) from Yes Bank market capitalization
Bangaluru: Yes Bank Ltd, India’s fifth largest private sector lender by assets, has had a rough ride since the Reserve Bank of India trimmed CEO Rana Kapoor term in September. The tiff with RBI has caused several top executives to exit Yes Bank’s board, and prompted rating cuts. The move by the central bank, which has already clamped down on the financial sector due to rising levels of bad loans, has also hit Yes Bank share price hard.
The developments since 19 November have knocked off about ₹ 34,500 crore ($4.95 billion) from the company’s market capitalization, as of Friday’s close.
21 September: On the first day of trade after RBI’s announcement, Yes Bank shares tank over 30%, and the lender loses as much as $3.1 billion in market value. Market insiders say RBI’s move exemplifies its increasingly assertive approach in tackling the bad debt problem plaguing India’s banking sector.
8 October: Yes Bank Ltd’s estranged promoters—Rana Kapoor and Madhu Kapur —have initiated moves to reach an out-of-court settlement, three people close to the development said. Both sides have begun preliminary talks to withdraw a long-drawn and bitter legal case against each other and put an end to their decade-old feud, they said.