Yes Bank has announced that its Group President Rajat Monga has resigned. Monga was also the former Chief Financial Officer at the bank. The announcement came during a conference call that the CEO of the Yes Bank Group, Ravneet Gill had.
Interestingly, the Yes Bank stock started quoting higher on the bourses and gained as much as 25% one of the highest single day jump for the stock in quite a while.
As reported earlier, there have been reports over the past few weeks of shares from the promoters’ quota being offloaded in the market. Morgan Credits Pvt Ltd, a firm owned by Rana Kapoor, the founder and ex-Chairman of Yes Bank, sold 2.3% shares followed by an additional 1.82 percent by Yes Capital (India) Pvt. Ltd. Markets react negatively to such offloading of equity by promoters in any company. It is seen as a reflection of their losing confidence in the company. The moment the information on these transactions were in the public domain, the share price dropped by close to 23%. The outgoing President, Rajat Monga himself had sold 14.11 lakh shares last month, it is learnt.
Yes Bank is currently in the process of regrouping and restructuring following the exit of Rana Kapoor as RBI declined an extension to his tenure at the helm. Ravneet Gill is steering the activities as the CEO.
Some of the highlights of the concall Gill had relate to assuring the market and other stakeholders that there is no decline in the asset quality at the bank. The bank is keen on raising capital for which it is now holding parleys with equity players and strategic investors. The bank may even sell certain loans to raise capital if the situation so demands. Gill also blamed the overall dull atmosphere in the Indian economy for monetization of some assets.
Gill has also revealed during the call that RBI has not asked for a merger of Yes Bank with any other bank, rather the regulator has insisted that the bank become strong, internally and externally.