Yes Bank’s successful QIP in a weak equity market had pushed the bank’s stock by 6% on Wednesday.
Yes bank is planning to raise about Rs 2,000 crore ($ 285 million) via QIP.
Brokerages have taken note of this asset quality weakness and cut target price for the stock.
Yes Bank shares fell 13% to a five-year low of Rs 117.20 on the BSE on Thursday.
The RBI is empowered under the Banking Regulations Act to appoint one or more additional directors on a private lender’s board in the interest of the bank or its depositors.
Last week, YES Bank reported a net loss of ₹1,500 crore for Jan-Mar, led by elevated credit cost and a steep decline in non-interest income.
The Yes Bank shares went down nearly 30% on Tuesday as many brokerage firms downgraded the stock and cut down target price after the lender
Swift is the global messaging software used for transactions by the financial entities.
The audit of the private sector lender’s books by the central bank showed that Yes Bank has recognized all toxic assets and provided for them for FY18.