The YES Bank stock rose in early trade ahead of the private sector lender's board meeting later in the day to decide future course of action after the Reserve Bank of India last week curtailed CEO and MD Rana Kapoor's term until Jan 31, 2019. In fact, the lender was the top Sensex and Nifty gainer in early trade rising 4.11% and 4.59%, respectively. The stock has gained after three days of consecutive fall reversing losses of over 29% after the RBI on Friday cut the tenure of its founder and CEO Rana Kapoor till January 31, 2019. YES Bank in a statement said, "The Bank would like to inform its stakeholders that the Bank and its MD & CEO will be fully guided by its Board of Directors (meeting scheduled on September 25, 2018), the Reserve Bank of India and other relevant stakeholders. The Bank's management remains committed to protect the interests of all of its stakeholders." Meanwhile, the lender said it has received the affirmation of 'Baa3' foreign currency issuer rating from Moody's on September 20, 2018. It has also received a reaffirmation of [ICRA] AA+ rating on various borrowing programmes from ICRA, with a stable outlook on September 21, 2018. The YES Bank stock has lost 34.13% in the last one year and fallen 25.33% since the beginning of this year. 32 of 46 brokerages rate the stock "buy" or 'outperform', nine "hold" and five "underperform" or "sell", according to analysts' recommendations tracked by Reuters.<doc-sep>File Photo: A security guard stands outside a closed Yes Bank branch in New Delhi live bse live nse live Volume Todays L/H More × Global brokerage firms, Macquarie and JPMorgan, maintained their positive stance on Yes Bank after the board decided to request the Reserve Bank of India (RBI) for a minimum extension of term for Rana Kapoor. The board plans to seek a minimum extension of three more months, till April 30, 2019 so that the audited results can be finalized. Macquarie maintained an outperform rating on Yes Bank with a target price of Rs 425. However, the global investment bank feels that the extension request may not be entertained given the nature of the allegations. The RBI may not approve internal candidates as they may be construed equally responsible for bank operations, it said. It further added that the stock re-rating now hinges on outcomes of stated action plans as well as FY18 divergences. JPMorgan maintained overweight rating on Yes Bank with a target price of Rs 400. The outcome was widely anticipated. There is lack of visibility on the succession plan. Further, in the board meeting, the bank also decided to appoint Rajat Monga (currently Senior Group President), and Pralay Mondal (currently Senior Group President) as executive directors to ensure a long-term succession plan. Their appointment will also be subject to RBI approval. However, not every brokerage firm has a buy or an outperform rating on Yes Bank. IDFC Securities has maintained an underperform rating with a target price of Rs 230. The global investment bank feels that the RBI is unlikely to review the tenor. The reason for extension goes against RBI’s broad basing principle. “Madhu Kapur and RBI both have to approve Rajat Monga and Pralay Mondal as EDs. The Board meeting has done nothing to address management uncertainty,” it said. Kapoor’s term as the Chief Executive Officer and Managing Director (CEO and MD) ends on January 31, 2019, after the banking regulator cut short his reappointment from three years to five months. The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.<doc-sep>Making a sharp u-turn, shares of YES Bank slipped 7 per cent in the afternoon trade on Tuesday ahead of the board meeting to be held later in the day to decide the future course of action after the Reserve Bank of India (RBI) curtailed the term of its managing director (MD) and Chief Executive Officer (CEO) Rana Kapoor and asked the bank to look for a replacement by January 2019. In the early trade, the stock rose 6 per cent. Dear Reader, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. 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Yes Bank live bse live nse live Volume Todays L/H More × Share price of Yes Bank fell 3 percent on Tuesday ahead of board meeting to decide on the action plan after the RBI directive. It has touched a 52-week low of Rs 198.65. “At the outset, the Bank would like to inform its stakeholders that the Bank and its MD & CEO (managing director and chief executive officer) will be fully guided by its Board of Directors (meeting scheduled on September 25, 2018), the Reserve Bank of India and other relevant stakeholders. The Bank's management remains committed to protecting the interests of all of its stakeholders,” Yes Bank said in a statement to the stock exchanges. On September 19, the Reserve Bank of India (RBI) had cut short Rana Kapoor's tenure to five months allowing him to serve as the bank's chief only up to January 31, 2019. In the statement, bank stated, “The Bank has a demonstrated track record of consistent delivery of business & financial outcomes over the last 14 years, since the commencement of its operations in mid-2004, across all critical parameters such as capital adequacy, credit risk, profitability, operating efficiency, growth, etc.” The bank clarified on news report that RBI slaps Yes Bank with Rs 38 crore over GST Violations, stating that the heading used by news agency is inappropriate and RBI has not imposed any fines/ penalties over GST violations on the bank. In addition, there has been no written communication in the form of a show-cause notice, or otherwise, provided to bank on the matter by the authorities. Research house Axis Capital maintained buy on Yes Bank but cut the target to Rs 300 from Rs 430 per share. It believes that ride will not be smooth as Kapoor was a key catalyst, while Kapoor’s absence may impact continuity of strategies and outlook. Yes Bank closed down Rs 6.40, or 2.83 percent at Rs 219.85 on the BSE. Posted by Rakesh Patil