YES Bank down 3% on Moody's review, independent director's resignation

Mukesh Sabharwal, chairman of the nomination and remuneration committee of the bank.

YES Bank down 3% on Moody's review, independent director's resignation
NEW DELHI: Shares of YES Bank declined over 3 per cent to Rs 134.60 in Wednesday's session, a day after the rating agency Moody’s placed the bank’s ratings under review for a downgrade.

Moody’s Investors Service has placed YES Bank’s ratings under review for a downgrade citing its large exposure to debt-laden nonbanking financial companies (NBFC) and the possibility that the bank’s loans under watch list could slip into non-performing assets (NPAs).

In a note on Tuesday, the rating agency arm said it had placed the bank’s foreign currency issuer rating, long-term foreign and local currency bank deposit ratings, medium-term note issuer rating under review for a possible downgrade.


Meanwhile, Mukesh Sabharwal, chairman of the nomination and remuneration committee of the bank, quit on Tuesday citing personal reasons.

Former interim CEO Ajai Kumar had quit on Monday, also on personal grounds.

YES Bank founder Rana Kapoor’s demand for a seat on the board and compensation for lost payment has thrown the private sector lender’s board into a tizzy, forcing the resignation of a second independent director in two days, ET reported.
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Rana Kapoor had sent two letters in early May seeking re-induction on the board as well as crores of rupees in compensation for lost remuneration. Many board members found this demand unreasonable, the report added.

Shares of YES Bank closed 3.34 per cent down at Rs 134.65 on BSE.
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