YES Bank made a statement on Thursday that Reserve Bank of India has given approval to them to appoint Ravneet Singh Gill as the new CEO, succeeding Rana Kapoor.
The Private sector bank also posted a 7 percent fall in the third quarter net profit as it sets aside higher provisions. Net profit fell to 10.02 billion rupees ($140.73 million) in the last quarter of the year 2018 from 10.77 billion rupees a year earlier to that, missing the analysts’ estimate of 10.6 billion rupees.
YES Bank had time till 1st February to announce the successor as Kapoor’s term ends on 31st January.
Ravneet Singh Gill, who is the CEO of Deutsche Bank’s India operations, will be joining the private lender, Yes Bank by 1st of March 2019. The stocks shot up by over 14 percent as soon as the news got public.
“YES Bank has received Reserve Bank’s approval for new managing director and chief executive officer Ravneet Gill. He may join on or before March 1, 2019, “YES Bank said.
The bank sent its recommendation to RBI after its board meeting on 9th of January. Yes Bank’s executive director, Rajat Monga, was believed to be in the race for the top post against Gill.
YES Bank stock traded in the price band of 218.10 to 236.30 on BSE.
The large-cap stock closed 2.71% or 5.80 points higher at 219.65 compared to the previous close of 213.85 on the BSE. The stock opened higher at 224.50 level in trade today and hit an intra-day high of 236.30 on the BSE.
In terms of equity volume, 102.71 lakh shares of the company were traded on the BSE, while over 13 crore shares changed hands on the NSE during the morning session.
The difference between the interest income a bank earns from lending activities and interest it pays to its depositors, called the Net Interest Income or NII, rose up by 41.2 percent for the quarter to Rs. 2666.4 crore. It was up by 10.3 percent sequentially.
Its advances grew 42.2 percent year-on-year to Rs 2,43,885 crore.
YES Bank’s gross NPA (Non-Performing Asset) increased to 2.1 percent of the total advances in the quarter, compared with 1.72 percent a year ago.
Net NPA also rose to 1.18 per cent from 0.93 per cent.
Rana Kapoor, outgoing MD, and CEO, Yes Bank, commented on the results and financial performance and said, “ (Yes Bank) has once again delivered satisfactory performance across income growth, margins, profitability, and capital accretion, even after the recognition and provision impact from a stressed Infrastructure conglomerate.”
“Growth in corporate business segments has been rebalanced after witnessing strong market share driven growth over the last few preceding quarters, while retail assets growth momentum continues,” he added.