Share price of YES Bank fell almost 6 per cent to a new 52-week low at Rs 146.85 on Wednesday, after the private bank informed the exchanges about appointment of an additional Director on its Board by Reserve Bank of India (RBI).
Shares of YES Bank started on a negative note after opening 1.25 points below the last close of Rs 156.15 and fell to intraday low at Rs 146.85, down by almost 6 per cent, also its new 52-week low. The stock was top loser on Nifty in the early trading session.
YES Bank stock price has fallen 9 per cent in one week, 44 per cent in one month, and over 57 per cent in the last one year.
The share price has been below the 30, 50, 150 and 200-day SMA.
At 12:45 pm, the share price of YES bank was trading lower by 5.22 per cent or 8.15 points on BSE at Rs 148 and on NSE, the price was down by 5.20 per cent or 8.10 points at Rs 147.
Mustafa Nadeem, CEO at Epic Research said, "Prices are in a bearish trend. Since the last few quarters, the stock has been in the news. Due to concern over its balance sheet, asset quality, exposure to IL&FS, directors and now RBI appointing an additional director for two years.
It is a concern for investors and anyone who is looking to hold the stock for the long term.
Technically, there were some pullbacks as the stock was coming out from oversold zone and pushing levels up. But that was in the short term and was the outcome of price structure. Some good immediate recovery did get two digit returns. But at present, this is not a stock that can be kept with confidence in the portfolio.
At present - support is there at lower levels of 125 - 126 and prices can test them in coming days. We may see some price pullback given they are in oversold territory. But the trend remains negative and it's a stock that is a sell on any rise towards 165 - 168."
The bank said in the filing, "Reserve Bank of India informed that in exercise of powers conferred under Banking Regulation Act, 1949, appointed Shri R Gandhi, Ex Deputy Governor, Reserve Bank of India as Additional Director on the Board of the Bank for a period of 2 years with effect from May 14, 2019 to May 13, 2021 or till further orders, whichever is earlier."
The filing further added that the board of the Bank has heartily welcomed the appointment of R Gandhi, given his impeccable background and track record as a highly respected regulator in India. "This appointment will significantly strengthen YES Bank's Board's composition and the bank will immensely benefit from his experience and wisdom," the statement read.
(Edited by Rupa Burman Roy)