Yes Bank Shares Fall Over 17% on Corporate Governance Concerns

0
68

Yes Bank is the most-traded stock on both BSE and NSE today

Madhu Kapur along with Rana Kapoor, had raised corporate governance issues in an affidavit filed in the Bombay HC on Monday in the case over the rejection of her daughter Shagun Gogia’s nomination as a director.

Mumbai: Live Mint reported that, shares in Yes Bank Ltd slid more than 17% on Wednesday to its lowest in 17 months, as investors fretted over alleged corporate governance issues.

Yes-BankMadhu Kapur, the widow of Ashok Kapur, one of the promoters of the bank along with Rana Kapoor, had raised corporate governance issues in an affidavit filed in the Bombay high court on Monday in the case over the rejection of her daughter Shagun Gogia’s nomination as a director.

These issues related to what she alleged was favourable treatment to the wife and daughter of managing director and chief executive officer Rana Kapoor. The court will hear the case on 12 August.

This comes at a time when the Reserve Bank of India’s (RBI’s) recent tightening measures have squeezed liquidity and hit commercial banks, sending their share prices lower.

Yes Bank shares fell as much as 17.3% to Rs.288.55, the level last seen in January 2012. At 10.15am, Yes Bank shares were down 12.1% at Rs.306.75 on BSE, while the benchmark Sensex declined 1.1% to 19,140.71 points. Yes Bank was the most-traded stock on both BSE and the National Stock Exchange.

Mint had reported on Monday that in an affidavit filed the same day, Kapur had questioned whether the bank had applied the same corporate governance standards to Kapoor’s family as it did while considering Gogia’s nomination as a director.

A Yes Bank spokesman said its response would be made in court.

“As a matter of policy, Yes Bank does not respond to queries, which are sub judice,” the spokesman said in an email. “The bank has suitable response with regards to the maintainability, legality and sustainability of the allegations reflected in your queries, which shall be submitted before the court at the appropriate time.”

(Live Mint)

Comments

comments

SHARE
Previous articleYES Bank Hits 52-Week Low on Corporate Governance Issue
Next articlePSN Murthy Awarded for Promoting Public Library Through CSR
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in