Shares of Yes Bank fell by nearly 30 percent in Friday's trade after the Reserve Bank of India cut short the lender's managing director and chief executive officer Rana Kapoor's tenure to January 31, 2019.

Edelweiss Financial Services cut the target price to Rs 375 a share from Rs 450 earlier but maintained a buy call on the stock.

To discuss the brokerage's stance on the stock, CNBC-TV18 spoke with Kunal Shah, associate director at Edelweiss. He said because of the RBI’s reluctance to extend Rana Kapoor’s term and the uncertainty on the new leadership, the stock price has reacted negatively.

"However, at current levels the stock is available at 1.6-1.7 times multiple and because of franchise strength, the overall return profile over the long-term would still be sustainable, so it still makes sense to buy," said Shah.

Shah said one can't be sure if there will be any stake sale from Rana Kapoor but even if that happens there would be takers at that particular level of the price.

“So at current levels all these uncertainties don’t seem to be a major overhang. It seems to be getting priced in,” said Shah.

According to Munish Dayal, partner of financial services at Baring Private Equity Partners, "Kapoor over the last 14 years has built a solid bank. It is one of the top few profitable and high growth bank and has been a wealth creator."

Dayal too believes that the market is reacting to the uncertainty of the manner in which the RBI has handled the issue. However, he is sure that Yes Bank will continue to acquire market share.

“The event should be looked at as an opportunity to get new management team or an MD & CEO. At the same time one should acknowledge the work Rana Kapoor has done,” said Dayal, adding that “I don’t see this as a negative for the bank as such.”

"The bank still has a good long-term future and would look at it from that perspective at a decent buy to evaluate" he said.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.