Yes Bank gains 3% as Ravneet Gill takes charge as MD & CEO, CIMB upgrades rating

Yes Bank shares gained more than 3 percent intraday on Friday after Ravneet Gill has taken a charge as Managing Director and CEO of the bank.

His tenure as approved by RBI is 3 years from the date of his joining, i.e. March 1, 2019 to February 28, 2022.

"The appointment of Gill will be subject to approval of shareholders' at the ensuing Annual General Meeting of the Bank to be held in the month of June 2019 on the terms and conditions including remuneration as approved by the Reserve Bank of India, the private sector lender said.

The bank further said Gill is not related to any of the Directors of the Bank and he has affirmed that he is not debarred from holding office of Director by virtue of any order of Securities and Exchange Board of India or any other such authority.

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Hence, Ajai Kumar ceased to be an interim MD & CEO of the bank. He continues as a Non-Executive Non Independent Director on the board of the bank.

Meanwhile, CIMB has upgraded Yes Bank to add and also raised price target to Rs 300 (from Rs 230 earlier) as concerns abated on asset quality and the top management of the bank.

These were the biggest overhangs on the stock.

The global research house said the nil divergence report of RBI and appointment of MD & CEO will result in a rerating of the stock as valuations remain attractive at 1.5x FY20F P/BV.

The fundamentals of the bank remain strong with robust loan growth, stable NIMs and asset quality, it added.

At 13:52 hours IST, the stock was quoting at Rs 236.45, up Rs 5.25, or 2.27 percent on the BSE.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions. First Published on Mar 1, 2019 01:55 pm