RBI gives Yes Bank clean chit, Yes Bank shares recovered

Yes Bank has breathed a sigh of relief as it was under pressure last year to bring in a new CEO along with coherent methods by the RBI to tackle domestic banks’ bad debts. Yes bank shares have recovered and the RBI have given them a clean chit. 

Yes Bank Ltd’s shares surged 30 per cent early on Thursday in their sharpest ever intra-day jump, a day after the Reserve Bank of India (RBI) cleared the private sector lender of discrepancies in bad loan reporting practices.

More than 101 million shares changed hands by 0418 GMT, double the 30-day average trading volume, and making them the most traded on the National Stock Exchange (NSE).

The central bank did not find any shfts in the asset classification and provisioning by Yes Bank for the fiscal year ending 2018, the bank said.

Yes Bank hired Ravneet Gill as its new CEO after the RBI denied Rana Kapoor an extension to his term twice last year without a concert reason.

Citi analysts said the positive report could support a more rapid return to market than what would have been possible. Adding this would be one of the key priorities for Gill.

Jefferies analysts said that they believe it is time for the RBI to increase transparency on decisions that have had a drastic effect on minority shareholders.

Yes Bank’s shares were last up 20.1 per cent in a broader Mumbai market that was down 0.25 per cent.

 

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