One can’t rule out further fall in Yes Bank: Siddhartha Khemka, MOSL

There is some hope of recovery at Yes Bank but that will take its own course of time, Siddhartha Khemka, VP - Head of Research (Retail), MOSL, tells ET Now.

Edited excerpts:

What to do with this brutal fall that Yes Bank has witnessed?

A lot of investors who are holding on keep asking what is happening. This is a development which is non-fundamental in nature and it is very difficult to predict what the board will decide, what RBI will decide and who will come as the next head and what course of action the bank will take.

Having said that, the view that is clearly coming out is for fresh investments, one needs to wait on the sidelines till you get some clarity. However, investors who are already holding and looking at it from a longer-term perspective, at least more than a year’s perspective can continue to hold on.


We believe that an institution the size and scale of Yes Bank may not go down just like that. There would be some hope of recovery but that will take its own course of time.

The market is wondering that if Mr Kapoor does step down in six months time, then the bank may lose its brand value. What is your view?

Obviously, there are issues beyond the management and for investors, the RBI diktat on Kapoor was a sudden move. The market was caught unprepared. The other issues which are now coming up would impact the stock price on an everyday basis.

The way forward will depend on how things pan out and how the bank is able to cope with the new leadership which will have to drive things away from current controversies. There is no denying that there could be issues which could lead to a further fall.

Nonetheless, the size and the kind of institution that Yes Bank has built over the years, I feel that things should recover, at least stabilise, maybe it will take three months, six months it is anybody’s guess.

Just when we thought the smallcap selloff was done with, it is back. Are you getting panic calls?

Not exactly panic calls but definitely this has taken everyone by surprise. If you look at some of the names that have fallen, obviously they were not of good quality but something which was not on our recommended list for a lot of broking houses including us.

The issue is the collateral damage that they have caused and a lot of investors were sitting on a lot of leverage. That has come down and led to accentuating the fall in the market, especially in the mid and smallcap names.