Yes Bank Tanks Over 11%, Denies Fund Management Of Promoter Firms
Yes Bank, the fifth largest lender in terms of assets, plummeted to a 20-month low on Wednesday even as it said that it was not involved in the fund management of its promoter firms YES Capital (India) Pvt Ltd and Morgan Credits Pvt Ltd. The response of Yes Bank came after media reports stated that these promoter firms routed debt money as equity into private finance companies. "The Bank is not involved in any way whatsoever with the funds management of two companies referred in media articles and the Bank has no dealings with these two companies except to the extent that Yes Capital (India) Private Limited and Morgan Credits Private Limited, being promoter group entities," Yes Bank said in a filing to the Bombay Stock Exchange (BSE).
Yes Bank share price
Yes Bank shares closed at Rs 161.70, after falling 11.71 per cent or Rs 21.45 on the BSE. In intraday trade, Yes Bank share price touched a 52-week low of Rs 160.15 after opening at Rs 181.
On the National Stock Exchange (NSE), Yes Bank shares settled at Rs 162, with a loss of Rs 20.65 or 11.31 per cent. It hit a 52-week low of Rs 160.30 on the NSE after opening at Rs 180.40.
Yes Bank downgrade by Moody's
On Tuesday, credit ratings agency Moody's Investors Service downgraded Yes Bank's foreign currency issuer rating to 'Ba1 from Baa3'. According to the agency, the developments around leadership transition as well as the governance issues are credit negative.
"Moody's has also downgraded the bank's foreign and local currency bank deposit ratings to 'Ba1/NP from Baa3/Prime-3' and foreign currency senior unsecured MTN program rating to '(P)Ba1 from (P)Baa3'," the agency said in a statement.
Earlier this month, non-executive and independent director Rentala Chandrashekhar former bureaucrat Ashok Chawla, the non-executive chairman of Yes Bank, resigned from their posts.
Yes Bank is supposed to appoint a successor to CEO Rana Kapoor whose current term ends on January 31.
Mr Kapoor, along with his brother-in-law Ashok Kapur, co-founded Yes Bank in 2004.
(With Reuters inputs)
