Yes Bank shares tank 34% as RBI asks bank to find new CEO

Yes Bank shares tumbled as much as 34.03% to Rs 210.10 as many brokerages has downgraded the stock and cut its target price after India’s central bank denied three year extension for its chief executive officer Rana Kapoor and asked him to step down after 31 January 2019. Brokerage firms Goldman Sachs, Nomura Research, Citigroup and IDFC Securities have downgraded the stock and slashed its target price. Of the analysts covering the stock, 39 have a “buy” rating, nine have a “hold” rating, while four have a “sell” rating, showed Bloomberg data.Goldman Sachs slashed its rating to neutral from buy and reduced its target price to Rs 300 from Rs 383 a share. Nomura Research downgraded the stock to Neutral from buy and reduced its target price to Rs 345 from 500 earlier. Citigroup cut to sell from buy and cut its target price to Rs 270, down 39% from its earlier target. IDFC Securities Ltd has given underperformer rating from neutral and decreased its target price to Rs 230 a share from Rs 350 a share.Brokerage firm Jefferies India believes that “we do not subscribe to the view that without Rana Kapoor there is no future for this systemically large bank, or that its financials have been cooked up. CET 1 is low but we do not see a material growth slowdown. More clarity is needed, and we do have questions, but we are not panicking”. The firm has maintained its buy rating but cut its target price to Rs 365 a share from Rs 445. Read more