YES Bank stock falls most on Sensex, Nifty after third resignation from board within a week

The YES Bank stock fell in trade today after independent director Rentala Chandrashekhar put in his papers on Monday.  The large cap stock was the top loser on Sensex and Nifty today.  On Sensex, the stock fell up to 6.48% to 191.75 compared to the previous close of 205.05.

On Nifty, the stock lost 5.69% to 193.15 compared to the previous close of 204.80.

The stock opened at a loss of 3.17% at 198.55 in trade today. The stock has lost 37.88% during the last one year and fallen 38.42% since the beginning of this year.

The stock is trading below its 50 day and 200 day moving average of 215.09 and 315.37.

Rentala Chandrashekhar is the third member to resign from the bank board within a week after  Ashok Chawla and OP Bhatt put in their papers which led to value erosion in the banking stock.

Besides, the private sector lender is expected to overhaul its board after receiving nod from its promoters, sources said.

"We would like to inform that Rentala Chandrashekhar, Non-Executive, Independent Director has tendered his resignation from the board of directors of YES Bank on November 19, 2018 with immediate effect," the bank said in the filing.

The bank cited personal reasons for Chandrashekhar's resignation.

"The Nomination & Remuneration Committee of the bank will look for a suitable replacement in the field of Information Technology & Cyber Security in terms of applicable provisions of Sebi regulations, Companies Act and RBI Act," it said further.

YES Bank's Nomination & Remuneration Committee is reviewing the performance of the board members, according to the sources.

Both the promoters groups of the bank, led by its MD and CEO Rana Kapoor and Madhu Kapur, are in favour of a clean-up and overhaul of the board, they added.

Earlier last week, former SBI chairman OP Bhatt resigned from the CEO search panel set up by the bank to find a successor for Rana Kapoor.

Bhatt is under CBI's scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya. Besides, he is also on the global board of Standard Chartered Bank which made a case of conflict of interest.

On November 14, the bank's non-executive chairman Ashok Chawla had resigned as his name figured in a CBI chargesheet filed in the Aircel-Maxis case.

Another independent director Vasant Gujarathi too had tendered his resignation on the same day over audit committee performance issues.

The Reserve Bank has asked the private sector lender to find a replacement for its founder MD and CEO Rana Kapoor by January 31.