YES Bank stock closes lower, makes smart recovery from intra-day low

The YES Bank stock saw seesaw movement in trade today. The stock fell in early trade, attempted a recovery but closed 1.48% or 2.70 points lower in trade today. The stock opened marginally higher at 182.20 level today compared to the previous close of 182.10 on Monday.

However, the large cap stock fell 4.31% in early trade to 174.25 level. Afterwards, the stock of the private sector lender made slow and steady gains to recover the losses partially.

Also read: Yes Bank recommends Brahm Dutt for post of Chairman: Sources

It, however, could not rise above its closing price of 182.10 in late trade today amid a strong recovery in the benchmark indices. The market capitalisation of the private sector lender stood at Rs 41,476.43 crore on the BSE.

The YES Bank stock has lost 43% since the beginning of this year and during the last one year. The stock has been losing for the last three days and fallen 3.88% during the same period.

28 of 47 brokerages rate the stock "buy" or 'outperform', 13 "hold", four "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.

Also read: Yes Bank to use data analytics to offer right mix of products

The stock closed below its 50 day and 200 day moving averages of 257.82 and 328.70 on the BSE.

The bank on December 13 held its board meeting to discuss the names of new chairman and CEO and MD.

It finalised a candidate for the position of chairman and would be seeking approval from the Reserve Bank of India for the appointment on the post.

On the appointment of new MD and CEO, the bank said the 'Search & Selection Committee' (SSC) and the board are "on track" to complete the process within the stipulated timeline given by the RBI. The recommendation in this regard will be submitted to the RBI post January 9, 2019, the lender added.

However, the YES Bank stock closed lower after the conclusion of its board meeting. The stock ended 6.56% or 12.25 points lower at 174.55 level on the BSE. On Nifty, the stock fell 6.32%. The stock fell after two days of consecutive gains and was the top loser on Sensex, Nifty on that day.

According to analysts, the decline in the counter could be attributed to the outcome of YES Bank's board meeting as investors were hoping that the lender will name an MD and CEO in the meeting, but the same was deferred to next month.

The move to appoint a new chairman was necessitated following the resignation of Ashok Chawla from the post in November.

In September, the RBI decided against extending Rana Kapoor's term as MD and CEO beyond January 31, 2019 and asked the bank to find a replacement.

Meanwhile, benchmark indices logged a smart recovery from day's lows and ended in the green. While the Sensex closed 179.79 points, or 0.51 per cent higher at 35649.94, Nifty settled at 10729.85, up by 66.35 points, or by 0.62 per cent.

Edited by Aseem Thapliyal