Moody's on Thursday maintained the outlook on Yes Bank's ratings as stable.Shares of private sector lender Yes Bank tumbled as much as 34.03 per cent in early trade today.
At 10:34 am, the stock was trading at Rs 256.15 on the BSE, down 19.58 percent or 562.35 points lower from the previous close.
Shares of Yes Bank Ltd were on track for their worst day today since market debut after the Reserve Bank of India (RBI) asked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019, reported news agency Reuters.Yes Bank informed on Wednesday that the RBI had curtailed the term of Rana Kapoor, till January 31, 2019, and asked the board to find a replacement.
The 61-year-old Kapoor owns over 10 per cent in the bank.
Private sector bank chiefs are allowed to continue holding their posts till the age of 70.In August, the bank board had given a three-year extension to Kapoor and sought the central bank's go-ahead for the same.
The bank had been found to have under reported non-performing assets (NPAs) by over Rs 10,000 crore for two consecutive years, reported Press Trust of India (PTI).Rating agency Moody's on Thursday maintained the outlook on Yes Bank's ratings as stable.
Moody's said Yes Bank will continue to outpace the industry in loan book growth, but added that while the capital buffers are adequate for now, it will have to raise capital from the market soon.Meanwhile, benchmark equity indices opened on a positive note on Friday.
At 10:50 am, the SP BSE Sensex climbed 279.11 points or 0.75 per cent to trade at 37,400.33.
The broader Nifty50 was trading at 11,319.65, up 85.30 points or 0.76 per cent.
(With agencies inputs)