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YES Bank independent director Uttam Prakash Agarwal quits; share price falls over 7%

Agarwal was appointed as independent director on Nov 14, 2018 and his tenure was to end in November 2023

twitter-logo BusinessToday.In        Last Updated: January 10, 2020  | 15:25 IST
YES Bank independent director Uttam Prakash Agarwal quits; share price falls over 7%
YES Bank share price lost up to 7.19% to Rs 43.90 compared to the previous close of Rs 47.30 on BSE

YES Bank share price fell in afternoon trade today amid a media report that Uttam Prakash Agarwal, independent director and chairman of YES Bank's Audit Committee, has resigned. Agarwal was appointed as independent director on Nov 14, 2018 and his tenure was to end in November 2023.

CNBC TV 18 in a report said, "Uttam Prakash Agarwal, Independent Director & Chairman of Yes Bank Audit Committee, has resigned."

Also read: Why YES Bank share price rose over 4% today

Meanwhile, BSE has sought clarification on the news report from the private sector lender. The lender's board of directors will discuss and consider raising of funds in a meeting to be held today. The private sector lender has been scouting for funds since its core equity capital is barely above the regulatory requirement of a minimum of 8 per cent.

The lender needs to raise funds to provide for bad debts and expanding lending operations.

In a kneejerk reaction, YES Bank share price lost up to 7.19% to Rs 43.90 compared to the previous close of Rs 47.30 on BSE. Share price of YES Bank has fallen after two days of gain. The stock has lost 75.74% during the last one year.

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On November 30 last year, YES Bank in a filing to the bourses disclosed the list of potential investors willing to infuse funds into the bank.

The bank mentioned entrepreneur Erwin Singh Braich/SPGP Holdings as a key investor with whom talks were ongoing and expected to be concluded shortly. Hong Kong-based SPGP Holdings/ Erwin Singh Braich committed nearly Rs 8,600 crore  ($1,200 million) to the bank.

Other parties who showed willingness for fund infusion, according to the bank, were Discovery Capital ($50mn), GMR Group and Associates ($50 mn), Rekha Jhunjhunwala ($25 mn), Aditya Birla Family Office ($25 mn) , Ward Ferry ($30 mn) and Citax Holdings Ltd and Citax Investment Group ($500 mn).

On December 2, the bank said that Capital International, part of the $1.87-trillion US-based Capital Group, has committed to invest at least $120 million in the private sector lender. On December 10, the lender after its board meeting said it would consider investment offer of $500 million from Citax Holdings and Citax Investment Group, adding that it would continue to evaluate other potential investors to raise capital up to $2 billion.

The private lender said that the binding offer of $1.2 billion submitted by SPGP Holdings and Canada's Erwin Singh Braich, which accounts for 60 per cent of its planned $2 billion capital raising, would "continue to be under discussion". 

On December 2, the bank said that Capital International, part of the $1.87-trillion US-based Capital Group, has committed to invest at least $120 million in the private sector lender.

On December 10, the lender after its board meeting said it would consider investment offer of $500 million from Citax Holdings and Citax Investment Group, adding that it would continue to evaluate other potential investors to raise capital up to $2 billion.

The private lender said that the binding offer of $1.2 billion submitted by SPGP Holdings and Canada's Erwin Singh Braich, which accounts for 60 per cent of its planned $2 billion capital raising, would "continue to be under discussion". Its stock price fell up to 20% intra day to Rs 40.70 compared to the previous close of Rs 50.55 as the bank deferred the final decision regarding allotment of shares to next board meeting.

On December 17, YES Bank CEO Ravneet Gill said the lender was on track to raise the much-needed capital by the end of this month.

In December end, Gill said the private sector lender would soon complete its capital raising process. Gill assured that it is just a matter of time before the bank would raise capital.

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