The YES Bank stock extended losses in Friday's trade after former SBI chairman OP Bhatt quit the panel set up by the private lender to find a successor to its MD and CEO Rana Kapoor. The stock fell up to 5.42% to 194.60 level compared to previous close of 206 on the BSE. It closed 7.14% or 14.70 points lower at 191.30 in trade today.
The stock has been losing for the last 3 days and has fallen 11.59% in the period. The large cap stock opened at a loss of 2.65% at 200.55 on BSE.
The stock is trading below its 50-day and 200-day moving average of 213.78 and 316.58.
The stock has lost 33.86% during the last one year and fallen 36.69% since the beginning of this year.
Bhatt, was an external expert on the Search and Selection Committee (S&SC) formed to find a successor to the bank's MD and CEO Rana Kapoor whose term ends in January 2019.
He resigned from the committee as "there may be a potential conflict of interest", the bank said.
Bhatt is under CBI's scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya.
"The Nomination & Remuneration Committee ('NRC') of the Bank while accepting Mr. Bhatt's resignation has recognised his guidance and inputs during his association with the S&SC as an External Expert," Yes Bank said.
The bank further said that given the significant progress made by the S&SC with the support of Korn Ferry over the past three meetings (most recent being held on November 13) in its mandate to identify a suitable successor to Kapoor, the NRC has decided to continue with the existing members to complete the process as per the timeline communicated by RBI.
Of late, the YES Bank stock has been marred by several issues such as RBI restricting the term of Rana Kapoor at the helm, and resignation of non-executive chairman Ashok Chawla as his name figured in a CBI chargesheet filed in the Aircel-Maxis case.
The Reserve Bank has asked the private sector lender to find a replacement for its founder MD and CEO by January 31.
Last month, Yes Bank had said the search panel had finalised the potential candidate profile.
Kapoor's term was curtailed by over two years by RBI for unspecified reasons and a bank request for extension of his term beyond January 31, 2019 was also rejected by the regulator. The RBI refusal came even after the appointment committee of the central bank had reportedly cleared his three year-term.
On Wednesday, bank's non executive chairman Ashok Chawla tendered his resignation from the bank's board following his name appearing in a CBI chargesheet in the Aircel-Maxis case. Representations were being made by shareholders and stakeholders to the bank as well as regulators like Sebi questioning his continuance on the bank's board after being named in chargesheet filed in Aircel-Maxis case by the premier investigating agency in July.