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CEO says Yes Bank will rebound, shrugs off credit cost concerns

Gill said the resignations were on personal grounds and board remains completely united.

ETMarkets.com|
Updated: Jun 13, 2019, 09.45 PM IST
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Anybody who says there were divisions within Yes Bank board is completely wrong: Ravneet Gill
Anybody who says there were divisions within Yes Bank board is completely wrong: Ravneet Gill
NEW DELHI: YES Bank’s new CEO Ravneet Gill on Thursday tried to calm market rumours and speculations, saying the private lender will recover sharply from the current low.

He shrugged off credit cost concerns, saying credit cost for his bank is unlikely to exceed 125 basis points this year, and the bank has made no change in its FY20 guidance.

He claimed shareholders continued to repose faith in the bank. “Some shareholders did mention the fall in YES Bank share price at the AGM (on Wednesday), but they reposed their faith on the bank management,” he said in an interview with ETNOW.

The comment by Gill came on the day as the lender’s scrip fell over 10 per cent to hit its lowest level since August 2015, after UBS cut its price target by 47 per cent to Rs 90 from Rs 170 earlier, citing weak earnings going ahead.

Gill said nothing untoward happened at its AGM held on Wednesday. Some shareholders, he said, asked the bank to consider rights issue.

The bank saw a few resignations earlier this week, including that of chairman of the nomination and remuneration committee Mukesh Sabharwal, and former interim CEO Ajai Kumar, allegedly due to co-founder and former CEO Rana Kapoor’s demand for a seat on the board. He also sought compensation for lost payment.

Overnight, the bank issued a clarification to stock exchanges, denying reports that suggested that Kapoor had demanded a board seat and compensation.

Gill said the resignations were on personal grounds and the YES Bank board remains completely united.

On Thursday, Kapoor himself came out in support of the bank's board and current CEO Ravneet Gill, expressing his full confidence in the new management and denied any desire to join the lender's board.
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