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YES Bank group president and former chief financial officer Rajat Monga quits

BusinessToday.In     October 3, 2019

Crisis-hit YES Bank on Thursday said that its group president and former chief financial officer Rajat Monga has resigned. The announcement was made by the CEO of the YES Bank Group, Ravneet Gill, during a conference call with investors and analysts following a heavy fall in the bank's share price over the past few sessions.

"Rajat has decided to move on. For the past two years he has been carrying a lot of load and needed some time off... so has decided to leave," Gill reportedly said.

Gill, who replaced Rana Kapoor in March after the latter's tenure was cut short by the RBI, reportedly said the possibility of Monga taking a sabbatical was also discussed but he decided to move on. "Monga just felt that he was at that stage of his life and career where he needed to step back, reassess his future course personally and professionally," he added.

Also Read: Rana Kapoor's daughters 'disappointed' with Reliance Nippon selling Yes Bank shares

The development came at a time when the Kapoor family's holding in the YES Bank has declined below 2 per cent from over 13 per cent in August 2018, following the sale of 3.92 per cent holding by an asset manager with whom the holding was pledged as a security. Reports also suggest that Monga and some other executives were selling the bank's shares in the open market over the past few sessions.

Reacting to the news, YES Bank shares snapped five-day losing streak and jumped as much as 36 per cent in intra-day trade on the Bombay Stock Exchange, marking one of the highest single day rallies in recent time. The stock closed day' trade at Rs 42.55, up 32.97 per cent, on the BSE.

Also Read: Banks' exposure to IndiaBulls Group at Rs 27,580 crore

Furthermore, the YES Bank CEO also assuaged investor concerns asserting that the share price is not entirely dependent on the fundamentals. "The fall in share price is not reflective of the core operating performance of the bank which I can assure you is strong and robust," he claimed, adding the liquidity and capital positions are much above the mandatory thresholds.

The mid cap stock lost nearly 23 per cent on Tuesday amid reports that  its promoters sold another 2.16 per cent stake in the bank. The mid cap stock fell 77.8 per cent since the beginning of this year and lost 81 per cent during the last one year.

Edited by Chitranjan Kumar with PTI inputs

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