RBI trims Rana Kapoor's term as Yes Bank CEO; asks pvt sector lender to look for replacement by January 2019

Rana Kapoor was part of the founding team of Yes Bank, along with Ashok Kapur who died in 2008. As a promoter, Kapoor and his family own 10.66 percent stake in the bank.

Press Trust of India September 20, 2018 07:17:27 IST
RBI trims Rana Kapoor's term as Yes Bank CEO; asks pvt sector lender to look for replacement by January 2019

New Delhi: The Reserve Bank has curtailed the term of Yes Bank's founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.

Kapoor, who has been managing director and CEO since the bank's inception in 2004, had sought a three-year extension till 31 August 2021. However, the sector regulator did not agree to the request and permitted him to continue only till January 2019.

"Reserve Bank of India has vide letter dated 17 September 2018 received today, intimated that Shri Rana Kapoor may continue as the MD & CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on 25 September 2018 to decide on the future course of action," the bank said in a statement.

In June this year, Yes Bank's shareholders had approved the re-appointment of Kapoor for three years, subject to final approval from the Reserve Bank of India (RBI).

His present term ended on 31 August. However, the RBI had allowed him to continue till further notice.

RBI trims Rana Kapoors term as Yes Bank CEO asks pvt sector lender to look for replacement by January 2019

A file photo of Yes Bank MD & CEO Rana Kapoor. AFP

RBI approved the reappointment of Rana Kapoor as MD and CEO of Yes Bank on 30 August 2018 but did not specify the period.

Earlier this year, RBI denied a three-year extension to Axis Bank CEO Shikha Sharma despite the board endorsing her reappointment.

Kapoor was part of the founding team of Yes Bank, along with Ashok Kapur who died in 2008. As a promoter, Kapoor and his family own 10.66 percent stake in the bank.

The banking sector has seen increased regulatory scrutiny over the last two years as the RBI has tried to push for appropriate recognition of bad loans.

The asset quality review initiated in December 2015 has led to banks recognising an additional Rs 6 lakh crore as bad loans.

Banks were asked to disclose 'divergences' in bad loan reporting. As a result, the RBI judged gross NPAs at Rs 8,373.8 crore for Yes Bank for 2016-17 against the declared gross NPAs at Rs 2,018 crore. Thus, there was a divergence of Rs 6,355 crore or three times the reported amount.

Shares of the bank closed at Rs 318.50, down 1.44 percent per unit on the BSE on Wednesday.

Updated Date:

also read

Petrol price nears Rs 108/litre in Mumbai; Highest ever. Know latest fuel rates
Business

Petrol price nears Rs 108/litre in Mumbai; Highest ever. Know latest fuel rates

Petrol and diesel price today: In Delhi, petrol prices remained at Rs 101.84 a litre while the rate of diesel was at Rs 89.87. Check latest rates in your city. Latest Petrol and diesel prices at Firstpost.com

Petrol, diesel prices remain unaltered today: Check rates here
India

Petrol, diesel prices remain unaltered today: Check rates here

Petrol and diesel price today: In Mumbai, petrol can be bought at Rs 107.83 per litre and diesel costs Rs 97.45 for one litre. Check latest rates in your city. Latest Petrol and diesel prices at Firstpost.com

Petrol and diesel price today 24 July 2021: Seventh day of unchanged rates; check prices in Delhi, Mumbai here
India

Petrol and diesel price today 24 July 2021: Seventh day of unchanged rates; check prices in Delhi, Mumbai here

Petrol and diesel prices: Petrol price in Delhi stands at Rs 101.84 per litre while diesel is available for Rs 89.87. In Mumbai, petrol is retailing at Rs 107.83, while diesel costs Rs 97.45. Read below to find out fuel prices in your city.