Investors bet on Yes Bank shares ahead of board meeting; stock zooms 15% in 3 days

Yes Bank shares surged nearly 15 per cent in the last three trading session, hitting a one-week high, ahead of its board meeting scheduled to be held today.

The stock made a strong come back this week, after hitting 52-week low of Rs 147 last month, as investors rushed to buy the stock ahead of the announcement of a successor to its Managing Director and CEO, Rana Kapoor, who will have to step down from his position early next year.

In last two weeks, Yes Bank has eroded over half of their market value from its all-time high of 404 level hit on August 20, 2018 amid uncertainty around leadership succession. Three board members, including its chairman Ashok Chawla resigned in November, after the Reserve Bank of India restricted the term of Rana Kapoor to 31 January 2019, which have resulted in a sharp correction of the bank's stock.

Also Read: Buy, sell or hold: YES Bank stock in focus as lender to hold board meeting today

Ahead of the board meeting, shares of the country's fourth largest private lender gained as much as 4 per cent to touch an intra-day high of Rs 194.30 apiece, after opening sharply higher at Rs 193.90 compared to the previous close of 186.80 on the BSE. Paring some of early gains, shares were currently trading at Rs 188.70 apiece, up 1.02 per cent.

On the National Stock Exchange, stocks of the bank were trading 1.21 per cent higher at Rs 188.85.

In anticipation of a positive outcome from its board meet, 28 of 47 brokerages rate the stock "buy" or 'outperform', according to analysts' recommendations tracked by Reuters.

Earlier on November 21, the private sector lender had said that its board will meet on December 13 to discuss the names of candidates for the position of next MD and CEO after Kapoor's term ends on January 31, 2019. The board will also recommend names for new chairman to be approved by the RBI as well as consider the appointment of independent directors.

Meanwhile, the benchmark index BSE Sensex was trading higher by 296.63 points, or 0.83 per cent, at 36,075.70.

Edited by Chitranjan Kumar