Hold on tight to your Yes Bank shares! Going forward, bank seen turning money making magnet
Yes Bank is on verge of announcing a new chief anytime soon. Just yesterday, Yes Bank said that it has identified the person and sent the name to the RBI for approval.
Yes Bank appoints Brahm Dutt as non-executive part-time chairman
Yes Bank appoints independent director Brahm Dutt as non-executive part-time chairman
Yes Bank alert! Shutdown of securities trading for 16 days for these investors! Rana Kapoor led bank submits names for new chief
Who will be Yes Bank chief Rana Kapoor successor? Lender submits name
Who will be Yes Bank chief Rana Kapoor successor? Today is D-Day on which new CEO's name will be sent to RBIGood sentiment is building around Yes Bank shares! Reason behind it is that investors are expecting to see the face of the bank's new CEO & MD who will replace Rana Kapoor. Yes Bank is on verge of announcing a new chief anytime soon. Just yesterday, Yes Bank said that it has identified the person and will send the name to the RBI for approval. This person, whoever it is, will have his task cut out as he is expected to bring transparency in the bank's working culture and processes, a problem that caused the whole controversy to erupt.
That it will be a strong person is what investors are placing their bets on by buying Yes Bank shares. Today, the Yes Bank shares were trading at Rs 176 per piece up by nearly 1% on Sensex. However, so far in early opening session, the bank has risen by nearly 2% when by touching an intraday high of Rs 179.80 on the index.
Yes Bank had inform last month that on December 13, the board of directors will give names for new chairman to be approved by the RBI as well as consider appointment of independent directors. This has reportedly been done, although no names have been revealed.
It was later announced in the evening of Thursday that, Yes Bank has finally identified three names whom they feel as suitable sucessor for Rana Kapoor. As per RBI guidelines, Kapoor's tenure must end by January 2019 and a new CEO to take charge from beginning February 01.
In a notification to BSE, Yes Bank said, "The 'Search & Selection Committee' ("SSC") and the Board of Directors are on track to complete the said process within the stipulated timelines of the Reserve Bank of India."
Yes Bank added that, the SSC has discussed and deliberated on the final shortlisted external and internal candidates presented by Korn Ferry post their comprehensive interviews and assessment.
The SSE will now engage with the candidates over the next few days for finalization. The final recommendation will be submitted to the Reserve Bank of India by the Board of Directors post
their next meeting scheduled on January 9, 2019.
However, that it is a fraught exercise is clear from the fact that the share price of Yes Bank has reversed its gaining trend and closed the day in the red on Thursday. But, what is noteworthy is that, in the first half of yesterday's trading session, Yes Bank stock had risen by nearly 4% as it cracked an intraday high of Rs 194.30 per piece. With that intraday high, Yes Bank had risen by nearly 21% in just 4 days' time. It was at around Rs 161.10 per piece on December 10 which was opening day of this week’s trading session on Monday.
Talking about Yes Bank share price, Mustafa Nadeem, CEO, Epic Research said, "Well, we have been bearish on Yes Bank since 190 odd levels given the current news events that are factored in the price. The stock has tested one of the most important supports at 140-150 levels. A new MD and CEO being appointed is going to have an impact as the Stock price is a sum total of many things and leadership is certainly the factor carrying more weight."
Nadeem added, "That is also reflected in price in the last few days in the stock which has rebounded from lower levels gaining +20%."
#BrokerageReport | देवांशी अशर से जानिए क्या है #UnitedBreweries #YesBank #JSWSteel समेत दूसरी कंपनियों पर ब्रोकरेज हाउस की रिपोर्ट।@AnilSinghviZEE @devanshiashar @deepaliranaa #stockstowatch #stocksinnews pic.twitter.com/7B8kgxl2t8
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So, who will be the new CEO of Yes Bank?
Earlier, some 10 names had hit the headlines, however, among them, 5 were already known. However, subsequently, a few names were removed.
Right now, as far as speculation is concerned, P. S. Jayakumar - Managing Director & CEO - Bank of Baroda may bag the position in Yes Bank.
Then second name was of Zarin Daruwala, CEO of Standard Chartered Bank. However, she has denied the rumours.
Another name was that of V Srinivasan Deputy MD Axis Bank whose term is going to end by December 2018.
Apart from the above three, two Senior Group Presidents, Rajat Monga and Pralay Mondal, may also have been shortlisted.
Nadeem added that this is certainly the time when one can start accumulating at lower levels since the worst case scenario in stock has been witnessed.
“We may see some consolidation going forward but yes buying on dips in this stock is on the cards for the next few weeks for a decent double-digit return,” noted Nadeem.
Hence, rather than panicking in Yes Bank shares one ought to hold on tight to the company as it seen to make investors rich ahead.
