Yes Bank shares close nearly 30% down as CEO Rana Kapoor's term shortened

New Delhi: Shares of Yes Bank cracked nearly 30 percent down on Friday after the Reserve Bank curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.

Yes Bank stock was the top loser among the blue chips on both the key indices. On BSE, Yes bank shares fell 28.71 percent to Rs 227.05 apiece. The company's market valuation slumped to Rs 52,406.01 crore on BSE. On NSE, shares of the company plunged 29.46 percent to hit Rs 225 a piece.

Intra-day, shares of the company further plunged 34 percent to Rs 210.10, its 52-week low on BSE.

The Reserve Bank on Wednesday curtailed the term of Yes Bank's founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019. Kapoor, who has been managing director and CEO since the bank's inception in 2004, had sought a three-year extension till August 31, 2021. However, the sector regulator did not agree to the request and permitted him to continue only till January 2019.

"Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD and CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on September 25, 2018 to decide on the future course of action," the bank said in a statement.

With PTI Inputs