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YES Bank rises most on Sensex after lender reassures CEO selection process on track

YES Bank rises most on Sensex after lender reassures CEO selection process on track

The YES Bank stock has been hit by a spate of resignations of board members in last one week and has fallen 11% during the period.

The YES Bank stock closed higher in trade today after the private lender said the resignation of three board members -Ashok Chawla, Vasant Gujarathi and Rentala Chandrashekhar- would have no effect on the new MD and CEO selection process.

"The new MD and CEO selection process is on track, as per committed timelines. The Search & Selection Committee and the Nomination and Remuneration Committee is scheduled to convene on December 12, 2018 to discuss the final shortlist for new MD and CEO appointment," the bank said in a filing to the stock exchanges.

The YES Bank stock has been hit by a spate of resignations of board members in last one week and has fallen 11% during the period.

The stock closed 2.83% higher to Rs 198 level compared to the previous close of 192.55 level on the BSE. It was the top Sensex gainer today. It touched an intra day high of Rs 200.75 in trade today.

The stock has lost 37.15% since the beginning of this year and fallen 36.54% during the last one year.

30 of 49 brokerages rate the stock "buy" or 'outperform', 13 "hold", four "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.

Reports of YES Bank's managing director and chief executive Rana Kapoor holding talks with co-promoter Madhu Kapur to reach a truce also improved sentiments around the stock.

"...efforts are underway for mutual resolution with Madhu Kapur and family, the Co-promoter of the Bank. This is intended to ensure better support and coordination by the two promoter groups with the Board of Directors of the Bank," the bank said.

It can be noted that following the RBI orders curtailing Kapoor's term, there were reports saying he is trying to reach a truce with Kapur, which can give the promoter group owning over 20 per cent of the bank collectively a better control in affairs of the bank.

Kapoor and Kapur have an acrimonious past and have also battled in the Bombay High Court.

The statement was issued jointly by Kapoor and Brahm Dutt, one of the seven remaining directors on the board, following a spate of resignations lately.