Yes Bank’s shares on Thursday soared nearly 33 per cent after the bank said its financials were strong and liquidity was well in excess of regulatory requirements. Following the bank’s assurance, the scrip jumped 32.97 per cent to close at Rs 42.55 on the BSE, even as Rajat Monga, senior group president and former chief financial officer, quit.
Yes Bank on Wednesday said the decline in its stock price was mainly due to forced sale of 10 crore equity shares on the back of invocation of pledged shares by a large stakeholder. The private sector lender’s share price plunged nearly 30 per cent during intra-day trade on Tuesday (October 1), before closing the session down 22.8 per cent at Rs 32.
“Rajat has decided to move on. For the past two years he has been carrying a lot of load and needed some time off … so has decided to leave,” chief executive Ravneet Gill said on Thursday.
The new deposits are also up 13 per cent quarter-on-quarter, he said. The bank is engaged in regular discussions with the RBI and the Finance Ministry, and both of them want a “strong and independent” Yes Bank, said Gill in a conference call. The bank is on the lookout for capital either from a private equity investor, a strategic investor or family office, he said.
Meanwhile, Morgan Credits Pvt Ltd (MCPL) and Yes Capital, part of the promoter group of Yes Bank, expressed their disappointment over Reliance Nippon Asset Management Company (RNAM) selling pledged shares of the lender at a ‘dismal price’ on Tuesday. “We are highly dejected that our family shareholding in Yes Bank was sold at such dismal price levels, despite the bank having created long-term shareholder value and over 20,000 jobs during the last 15 years. We will continue to focus our energies on growing the start-up ventures incubated by us where we see potential for meaningful value creation in the long-term,” they said in a press statement.