May 15, 2019 / 7:53 AM / 2 months ago

BUZZ-Yes Bank drops as India's cenbank appoints director in rare move

** Shares of private-sector lender fall ~7% to 145.25 rupees, lowest since March 2016

** India's cenbank on Tuesday appointed here ex-RBI deputy governor R Gandhi as an additional director to Yes Bank's board

** RBI’s move signals an increased level of scrutiny on the lender - Asutosh Mishra, head of research of institutional equity at Ashika Stock Broking Ltd

** First time in “many years” that a RBI has appointed a special director to a large bank’s board - Mishra

** Gandhi’s appointment comes weeks after rising bad loans drove the bank to its first quarterly loss, leading brokerage Macquarie Research to set a rare double-downgrade on the company’s stock

** The move could be a positive for the lender in the long run, considering new CEO has promised to clean up the bank’s balance sheet - Mishra

** Stock among biggest losers on NSE index; nearly 63 mln shares change hands by 0748 GMT, vs 30-day average of 49.7 mln shares

** Stock down 14.3% so far this year (Reporting by Chris Thomas in Bengaluru)

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