This was seen as a good news in business channels as the CEO is an experienced industry veteran but the stock is hitting lower circuits and is down 15% …Is the market worried that RBL bank is the next YES Bank?
CLSA is the culprit
Market seems to be disappointed with the appointment of a PSU banker to lead a private lender. This news was taken positively by the market.
Current CEO was previously Administrator of DHFL during its bankruptcy process.
Fear everyone have now is that there is lot of stress in RBL bank and a new CEO with experience of handling financial institution bankruptcy is brought in to clear the mess.
And that is driving down the stock.
Another yes bank in works ?
Unlikely as RBI has intervened well in advance in this case. So hopefully things won’t go to Yes Bank level and corrective steps will be taken in time