RBI supersedes Yes Bank Board of Directors, appoints administrator
Yes Bank: RBI has superseded Board of Directors of Yes Bank. RBI has appointed former State Bank of India Chief Financial Officer Prashant Kumar as administrator for the bank. RBI has already capped withdrawals from Yes Bank accounts at Rs 50,000. RBI took the decision of superseding Yes Bank board after consultation with Central Government.
Stocks of Yes Bank rose by 27 per cent earlier on Thursday amid reports that the government had given a go ahead to SBI and other financial institutions to take over Yes Bank which is severely capital starved.
The scrip advanced 25.77 per cent to close at Rs 36.85 on the BSE. During the day, it jumped 29.35 per cent to Rs 37.90. The scrip witnessed a sudden rise after hitting a 52-week low of Rs 28.05.
Shares of SBI also closed 1.05 per cent higher at Rs 288.30 on the BSE. It hit a high of Rs 298.25 and a low of Rs 270.10 during the trade.
"As per media reports, SBI has been told to invest as a lead in a consortium in Yes Bank. Though we may see a big spike in price of Yes Bank and negative reaction in price of SBI, we recommend caution to retail investors," Abhimanyu Sofat, Head of Research, IIFL Securities.
Yes Bank is looking to raise fresh capital but the plans are facing uncertainties.
On RBI's withdrawal cap, Yes Bank said that it had not received any communication from the Reserve Bank or any other regulatory body.
"… we are unaware of any such decision. Therefore, we are not in a position to comment on such news item," Yes Bank said in a filing to the stock exchanges.
(With PTI inputs)
Also Read | RBI caps withdrawals in Yes Bank at Rs 50,000