Yes Bank tumbles again

Yes Bank is the second top loser on the BSE currently, going down over 8% to Rs.204.65 and the mood on the counter is pretty somber.

Once again management issues have come calling. The current Chairman of the bank, Mr.Ashok Chawla has resigned with immediate effect after being named in a corruption chargesheet by the CBI.

This puts Yes Bank is a spot as it will now hunt for a Chairman while looking of a CEO when  Rana Kapoor steps down in Jan.

Another person to resign was Vasant Gujrati, the chairman of the bank’s audit committee and in his place, forme Institute of Chartered Accountants of India president Uttam Prakash Agarwal has been appointed.

RBI has questioned the strictness of the audit processes followed by Yes Bank and the Bank’s Nomination and Remuneration Committee (NRC) recommended that preemptive action should be taken, wherein Gujrati resigns before RBI asks the bank to do so.

Many in the banking circle say that this is a clean-up process of the top layer and hopefully, the new management team will be clean.