Who will be Rana Kapoor successor at Yes Bank? 2 big names emerge
Who will be the successor of Rana Kapoor at Yes Bank? This question is the biggest thing in mind of investors who emerged as the biggest losers on the market today.
Yes Bank has tumbled by more than 34% on stock exchanges today, thereby making a new record low. As per the company's corporate announcement, it was declared that Rana Kapoor may continue as the MD & CEO till 31st January, 2019, while the Board of Directors of the bank are scheduled to meet on September 25,2018 to decide on the future course of action. The news was not taken well by investors, as the bank's share price clocked a 52-week low of Rs 210.05 per piece at one time during the day.
Now, all eyes are watching as to who will be successor of Rana Kapoor, the man who established Yes Bank and built it up from scratch. It's a difficult task for Yes Bank to find a successor in such short period of time, of course.
Rumours have started to escalate about Kapoor's successor, and a few names have actually come into the limelight.
IDFC Securities says Yes Bank will now focus on succession planning. Left to the bank, the first preference would be an internal candidate, most likely Rajat Monga, But the new candidate has to be approved by RBI. It is likely that RBI my actually insist on an external candidate.
Meanwhile, a few names like Paresh Sukthankar who has resigned from HDFC Bank on August 10, could be pursued as a successor of Rana Kapoor. However, Sukthankar is likely to take up a job for a social cause and unlikely to join a competing bank.
Interestingly, there is even buzz that Kotak Mahindra Bank may acquire YES Bank.
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IDFC adds, "We believe Uday Kotak’s business philosophy of granular lending is very different from YES Bank’s current loan composition. As such we see such a merger as highly unlikely. We believe it is important to recognize the impact of Rana’s absence on YES Bank’s earnings. Till there is complete clarity on the successor, we would avoid getting into the stock"