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(Reuters) - Yes Bank Ltd, India's fifth largest private-sector lender by assets, has had a tumultuous couple of months since the country's central bank trimmed extension to its chief executive officer's (CEO's) term in September.
The move by the Reserve Bank of India (RBI), which has already clamped down on the financial sector due to rising levels of bad loans, has hit Yes Bank's share price hard and also spurred several departures in the company's top brass.
The developments since Sept. 19 have wiped off over 290 billion rupees ($4.06 billion) from the company's market value, as of Tuesday's close.
Graphic: Yes Bank's fast-depleting market value https://tmsnrt.rs/2PHsscQ
Here's how the saga unfolded:
June 12: Yes Bank's shareholders approve http://bit.ly/2KoO0Fj Rana Kapoor's re-appointment as managing director (MD) and CEO for three years from Sept. 1.
Aug 30: Bank gets https://www.bseindia.com/xml-data/corpfiling/CorpAttachment//2018/8/1d3f3d36-0b55-4266-ab79-14bee3f65e9a.pdf RBI's nod for Kapoor to continue as MD and CEO till further notice from the central bank.
Sept 19: RBI cuts short Kapoor's term till Jan. 31, 2019.
Sept 21: On the first day of trade after RBI's announcement, Yes Bank shares tank over 30 percent, and the lender loses as much as $3.1 billion in market value.
• Market insiders say RBI's move exemplifies its increasingly assertive approach in tackling the bad debt problem plaguing India's banking sector.
Sept 25: Lender's board decides to seek RBI's nod to extend Kapoor's term until at least April 30, 2019, says it will form a committee to search for Kapoor's successor.
Sept 28: Kapoor, in a tweet, says he remains committed to interests of the bank and its stakeholders. He also says he will never sell his promoter shares, but pass them on to his daughters.
• Rating firm CARE Ratings places http://bit.ly/2Bgn1IK Yes Bank's debt instruments under 'credit watch with developing implications', citing RBI's move to restrict Kapoor's term.
Oct 5: Bank names T S Vijayan, former chairman of India's insurance regulator, and OP Bhatt, former chairman of State Bank of India, as external experts of the search and selection committee.
Oct 11: Yes Bank appoints https://www.bseindia.com/xml-data/corpfiling/AttachHis/19047ba7-573e-4045-9ba9-41d38482a714.pdf advisory firm Korn Ferry to help find a new CEO.
Oct 17: RBI refuses to give Rana Kapoor more time at the bank and asks the lender to find a new CEO by Feb 1, 2019. Yes Bank says it aims to complete the recruitment process by mid-Dec.