INSUBCONTINENT EXCLUSIVE:
current CEO and MD Rana Kapoor to continue till only January-end.
The scrip was up 1.75 per cent at Rs 230.20 at around 9.40 am while the
inception in 2004, had sought a three-year extension till August 31, 2021
However, the regulator did not agree to the request and permitted him to stay on till January 2019.
Ahead of the board meeting, the bank
there is a lack of near-term positive catalysts
However, looking at episodes affecting ICICI Bank and Axis Bank (regulatory intervention at CEO level followed by the board coming up with
an alternative succession plan) suggest that a decisive step taken by the board to ensure a relatively orderly succession could alleviate
currently heightened concerns
ICICIdirect, Kapoor has played a significant role in building the banking franchise, which has commanded a premium
"Post his exit, the attached premium is bound to be wiped out
A change in leadership entails risk of balance sheet clean-up, which will impact profitability," it said further.
Brokerage firm Elara
command similar multiples
And now, there exists a high probability of lesser earnings growth and lower return ratios
Our take is YES Bank would deliver EPS growth of 7 per cent and 32 per cent YoY and RoE at 16.4 per cent and 18.8 per cent in FY19 and FY20,
