Shares of private sector lender Yes Bank surged in trade on Friday morning, after the firm named Ravneet Gill of Deutsche Bank India as MD & CEO to replace Rana Kapoor. Yes Bank shares rose as much as 13.74% Rs 245, highest since October 17. Ravneet Singh Gill will join on or before March 1, 2019, the private lender said in a regulatory filing. “We view the appointment of Ravneet Gill as a key positive, because it removes succession uncertainty,” Citi Research said in a note.
Jefferies has cut the share price target price to Rs 275 from Rs 285 earlier, citing that while the appointment is a positive development, one awaits the strategy from the new CEO for further clarity. Yes Bank’s stock has seen a rough wave over the last few months due to a squabble with the RBI over current CEO Rana Kapoor’s tenure, which had also led to several board departures.
In its earnings for the quarter ending December, Yes Bank has posted 7 per cent fall with a net profit at Rs 1,001 crore against Rs 1,076.8 crore in the same quarter last fiscal, the lender told exchanges. The gross NPA was at 2.10 per cent against 1.60 per cent, while net NPA at 1.18 per cent versus 0.86 per cent, QoQ.
Commenting on the results, Rana Kapoor, Managing Director & CEO, Yes Bank said, “Yes Bank has once again delivered satisfactory performance across income growth, margins, profitability and Capital accretion, despite the recognition and provision impact from a stressed Infrastructure conglomerate.”