BackYes Bank shares fall 17% on alleged corporate governance issues
Yes Bank is the most-traded stock on both BSE and NSE today
Premium(Abhijit Bhatlekar/Mint)
Mumbai: Shares in Yes Bank Ltd slid more than 17% on Wednesday to its lowest in 17 months, as investors fretted over alleged corporate governance issues.
Madhu Kapur, the widow of Ashok Kapur, one of the promoters of the bank along with Rana Kapoor, had raised corporate governance issues in an affidavit filed in the Bombay high court on Monday in the case over the rejection of her daughter Shagun Gogia’s nomination as a director.
These issues related to what she alleged was favourable treatment to the wife and daughter of managing director and chief executive officer Rana Kapoor. The court will hear the case on 12 August.
This comes at a time when the Reserve Bank of India’s (RBI’s) recent tightening measures have squeezed liquidity and hit commercial banks, sending their share prices lower.
Yes Bank shares fell as much as 17.3% to ₹ 288.55, the level last seen in January 2012. Shares of Yes Bank ended 7.19% down at ₹ 323.80 apiece on BSE, while the benchmark Sensex ended 0.01% down at 19,345.70 points. Yes Bank was the most-traded stock on both BSE and the National Stock Exchange.
Mint had reported on Monday that in an affidavit filed the same day, Kapur had questioned whether the bank had applied the same corporate governance standards to Kapoor’s family as it did while considering Gogia’s nomination as a director.
A Yes Bank spokesman said its response would be made in court.
“As a matter of policy, Yes Bank does not respond to queries, which are sub judice," the spokesman said in an email. “The bank has suitable response with regards to the maintainability, legality and sustainability of the allegations reflected in your queries, which shall be submitted before the court at the appropriate time."
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