No Kapoor at YES Bank worries Street shares likely to fall
YES Bank shares may drop on Friday as most top brokerages downgraded the stock after the Reserve Bank of IndiaYEasked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019.?
Citi has reportedly downgraded the stock to \'sell\' from \'buy\' and IDFC Securities has lowered its rating on the company to \'neutral\' from \'underperformer\'. Citi, Edelweiss and IDFC Securities have cut the target price on YES Bank between 17.2 per cent and 38.6 per cent.?
\"This is undoubtedly a major negative... Absence of any communication from YES or RBI on this matter will be an overhang on the stock...,\" said Macquarie in a note.?
The bank\'s board and shareholders had approved another three-year term for Kapoor. The exit of Kapoor, who co-founded the bank in 2004 and plays an active role in it, could impact the loan and fee growth, and may potentially affect the bank\'s capital raising plans, said brokerages.?
Besides, the time frame till Januaryend may prove to be insufficient to find a suitable candidate, they added.?
Though the Street has been wary about the reappointment after the RBI recently gave temporary approval for Kapoor???s continuance as MD until further notice, but the risk has not been priced in entirely.
