It says according to sources …not official.
Do you think its true and confirmed news?
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If we think that it could happen, surely they would have thought about it and had a contingency plan in place.
Only question is how is the market going to react to it that news. From what I have been seeing for the past few days, it will fall down and down.
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It will tank most probably but then settle down as has been the case in previous meltdowns. Below 300 bucks is a given. More details would be sent to the exchanges soon, is what the sources say. Let’s see…more information is needed on what regulatory and compliance issues that RBI is talking of.
Perhaps Paresh Sukthankar (who recently resigned from HDFC Bank) will be selected as the new CEO of YES bank?
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The news has been confirmed… there is an announcement by yes Bank confirming this4b4b2947-7e80-4013-878d-6c3330117be5.pdf (275.1 KB)
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This is positive news as the uncertainty is now gone.
I wonder what role RK will have after this as the article says “CEO & MD”? In what capacity will he remain on the board? After all he has a stake of 11%~. Can’t just move on…
Also I see on BSE promoter holding is 20%. Who has the other 10? Family of Ashok Kapur, the co founder or someone else?
Can’t they create, wouldn’t they create a position in the space defined by SEBI, in the better interests of themselves and the investors?
How transparent RBI is ? without giving any solid Reason they are taking such action.
it would have been good if they would have given a reason for taking this action.
I think the uncertainty will remain for sometime as reason for this action isn’t know or declared by RBI, so people will continue to speculate and make up different stories related to it.
I too really am not sure about how he will continue to remain involved in day to day operations ?
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Great news for LT investors! Need to see he gets another Chanda kind of guy for Kamath’s successor or a truly independent leader. The test will be if he/she indulges in kitchen sinking at the start of the tenure. That will be the time to load this one. Very interesting time for pvt banking space when all suspects are being removed one by one. ICICI, Axis and now Yes. Good for Indian economy for sure.
Disc: This was my first 7x. No holding as of now
What are your views on Rana Kapoor? Why do you categorise him as suspicious…? Not speculations, but merely facts to support your view will be useful to the forum members. @sumi00
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Directors of Yes Capital and Morgan Credits are Raakhe Kapoor Tandon, Radha Kapoor Khanna, Roshini Kapoor…RK’s daughters… according to Zauba corp
So that makes up for the 10-11%
While the Mags Finvest belongs to the family of Ashok Kapur…
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This is a very strange move by the RBI in my opinion. They are letting PSU banks on the loose and to scrutinise so heavily on decisions of a well run PVT bank. Share going to behave negatively i suppose? But you can never know in this market.
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Think it’s definitely a negative in the short term. But the fundamentals of the bank stay intact. New leadership will bring a lot of unknowns. I think it’ll depend on the role RK plays going ahead as well as the pedigree of the new leadership.
Will recommend you to read UBS reports on yes bank. They have collected loan data from MCA and their conclusions. Spare a moment to check all troubled promoters and their private financiers … kingfisher, Deccan Chronicle, Fortis etc etc … the list is endless and Yes bank is common there. What kind of franchise they have created which requires this roller coaster kind lending. Now tell me is this kind of culture sustainable after RK is out? RBI divergences is for everyone to check and reflect. Also, talk to some senior folks in AMCs about their opinion on Yes bank’s leadership. I was also very disappointed the way he handled his close relative’s desire to be on board. That reveals the character and you won’t get supreme court’s stamp that some promoter is good or bad for a company. We need to decide on our own based on circumstantial factors.
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Well, the exchange notification does not say that RBI has asked the board to look for his successor. It only talks of an extension up to Jan 31, 2019. Media speculation? Same thing happened to ICICI yesterday. They denied that they had submitted any application for settlement.
Let’s assume for a moment that the news is true. It will be a step in the right direction as there will be definitive end date to his term and there is no shortage of talent pool inside the bank as well as outside.
Disclosure: Invested and will buy more if it dips further
UBS has been keeping this opinion of Yes Bank for almost 5years now. And on Yes Bank’s complaint, they made drastic changes to their own report. People should refrain from quoting UBS reports repeatedly. UBS has lost credibility.
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well, a new generation bank growing too fast trades at the valuation of ICICI and Axis which have well known troubles. I need not say anything on this further. Mr. Market has given the verdict and it is for folks to accept or remain in denial.
The stock simply became 7x is an indicator that the underlying business is a solid one. As per Thomson Reuters also, it has just 2 sell recommendations among 46 analysts.
How can you be sure that your opinion is not a sign of Reverse Endowment Effect. How has it changed during your holding and afterwards?
Disc. 7x excluding dividends. Will continue to hold till underlying fundamental changes.
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