Yes Bank board to recommend names for new chairman to RBI on 13 December; says on track to find Rana Kapoor's successor

Yes Bank reiterated that it is on track to find a successor to MD and CEO Rana Kapoor

Press Trust of India November 28, 2018 15:41:52 IST
Yes Bank board to recommend names for new chairman to RBI on 13 December; says on track to find Rana Kapoor's successor

New Delhi: Yes Bank Wednesday said its board on 13 December will recommend names for a new chairman to be approved by the RBI as well as consider the appointment of independent directors.

The private sector lender, which is grappling with governance as well as NPA issues, has seen resignations of three independent directors, including Chairman Ashok Chawla.

In a regulatory filing, the bank said its Nomination & Renumeration Committee (N&RC) of the board and the board of directors are scheduled to meet on 13 December.

During the meetings, they would consider proposals for appointment of independent directors and also recommend name(s) of the new chairman for approval of the RBI, it added.

Yes Bank board to recommend names for new chairman to RBI on 13 December says on track to find Rana Kapoors successor

Representational image. Reuters

Yes Bank also reiterated that it is on track to find a successor to MD and CEO Rana Kapoor and said the resignations of the three board members will have no impact on the succession plan.

Chairman Ashok Chawla, Vasant Gujarathi and Rentala Chandrashekhar have quit the bank on various reasons including on governance issues.

In the meantime, the bank inducted Uttam Prakash Agarwal in its board taking the current strength to seven members.

Yes Bank's Search & Selection Committee (SSC) and the N&RC are scheduled to meet on 12 December to discuss the final shortlist for the new MD&CEO appointment.

In September, the RBI decided against any extension for Rana Kapoor to continue as MD and CEO beyond 31 January, 2019 and asked the bank to find a replacement.

According to sources, the RBI did not want him to continue on the position due to under-reporting of bad loans as well as laxity in corporate governance.

The stock of Yes Bank was trading at Rs 162.55, down 11.25 percent, on BSE.

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