(Reuters) – Shares of India’s Yes Bank Ltd plunged nearly 10 percent on Friday to a 29-month low, as the lender’s management crisis caused by the central bank curtailing its top executive’s tenure dragged on.
The bank said earlier this week that it would seek the Reserve Bank of India’s (RBI) approval to extend CEO Rana Kapoor’s term beyond January as it needs more time to identify and groom a successor.
“The bank’s woes will continue till there is uncertainty around it,” said R Sreesankar, co-head – institutional equities at Prabhudas Lilladher.
The central bank said last week Kapoor could serve as CEO until Jan. 31, despite shareholders seeking to extend his term for three more years.
After the RBI directive, the company lost $2.95 billion of its market value last Friday and at least two brokerages downgraded the stock, citing uncertainty and doubts in investors’ minds about the bank’s future.
Shares of the country’s fifth-largest private sector bank by assets fell as much as 9.6 percent on Friday to 183.65 rupees, their lowest since May 9, 2016. More than 77 million shares had exchanged hands by 0758 GMT, 1.8 times their 30-day average of 42.7 million shares.
In response to a query by the National Stock Exchange, the bank denied on Thursday any dealings with Three Sisters Family Office, the investment vehicle run by Kapoor’s three daughters.
As of last close, stock had declined more than 36 percent since the RBI directive last Friday, and nearly 41 percent this month.