Yes Bank’s Group President Rajat Monga has resigned, the private lender’s Chief Executive Officer Ravneet Gill said during a conference call on Thursday, Moneycontrol reported. Gill said Monga had decided to “move on” but did not divulge any details. It is not clear if Monga’s resignation is effective immediately.

After the news broke, Yes Bank’s stock surged 25% to Rs 39.90. This is biggest gain for the lender’s stock in almost eight months, according to Bloomberg Quint.

Monga, who joined the bank in 2004, earlier held the post of chief financial officer. At one point, he was considered for the top position and was set to succeed Rana Kapoor. However, Gill took over in January after the Reserve Bank of India refused to extend Kapoor’s tenure.

During the conference call, Gill allayed investors’s fears. He said Yes Bank’s performance was “absolutely sound”, adding that the lender might reshape its loan book.

“We have enough liquidity, we are very stable and the share price movement of recent days should not become a proxy for how the bank gets perceived,” he added. On October 1, the shares of the bank fell 23% – its lowest in a decade – after the forced sale of 10 crore equity shares.

Several Yes Bank employees have sold their shares in the past few weeks. Monga sold his shares on September 18 and September 19 for Rs 8.22 crore, reported Economic Times. Gill said the sale of employees’ stocks should not be seen as their lack of loyalty to the bank.

Many of Yes Bank’s top executives have quit the bank in the recent past. In November 2018, Ashok Chawla quit as its chairperson. He was followed by independent Director R Chandrashekhar.

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