Yes Bank says it is geared to appoint successor to Rana Kapoor, will finalise two external experts for search committee by 7 October

The RBI had last month curtailed the three-year term that Yes Bank's board had sought for its MD and CEO Rana Kapoor, also one of the promoters of the bank, to 31 January, 2019, and asked the bank to find a replacement.

Press Trust of India October 01, 2018 13:49:46 IST
Yes Bank says it is geared to appoint successor to Rana Kapoor, will finalise two external experts for search committee by 7 October

New Delhi: Yes Bank on Monday said proportion of dud loans has reduced in the last one year and the asset quality outlook is "stable".

The midsize private sector lender's debt instruments have been put on 'credit watch with developing implications' by Care Ratings, it disclosed in a regulatory filing.

"Over the past few days, some unfounded speculations regarding the bank's asset quality have been brought to its notice. In this context, management clarifies that the asset quality continues to be stable," a bank statement said.

The bank also said that the liquidity position is "comfortable" with a liquidity coverage ratio of 101 percent as on September 30, 2018.

Yes Bank says it is geared to appoint successor to Rana Kapoor will finalise two external experts for search committee by 7 October

Representational image. Reuters

The lender's scrip had been witnessing a heavy sell-off, eroding 40 percent of its value since the Reserve Bank curtailed down the term of its co-promoter, managing director and chief executive, Rana Kapoor, till January 2019, for unspecified reasons.

Yes Bank was found to have under reported its non-performing assets (NPAs) by over Rs 10,000 crore for two consecutive years by the RBI.

The bank revealed that the proportion of gross NPAs have declined to 1.35 percent as on 30 September, 2018, from 1.82 percent the year ago.

In the numbers released before the announcement of the quarterly results, it said loans have grown 61.5 percent to Rs 2.40 lakh crore as on September 30, and this includes domestic advances of Rs 2.20 lakh crore.

Deposits have grown 41 percent to Rs 2.23 lakh crore, with the share of the low-cost current and savings deposits at 33.8 percent, it said.

The bank said the data is subject to approval by the audit committee of the board, board of directors and review by its statutory auditors.

Meanwhile, the lender said it will finalise the two external members on a panel to search Kapoor's successor by 7 October.

The newly-formed search and selection committee will be assisted by a global leadership advisory firm and evaluate both internal and external candidates, it said, adding that RBI timelines will be adhered to.

On 25 September, the board decided to seek an extension of up to eight months beyond the trimmed down period of 31 January, 2019 for Kapoor to stay on so that the bank could find a successor and meet other regulatory demands of closing the financial accounts for the year.

It also established the search and selection committee comprising three members from the existing nomination and remuneration committee along with two external experts to identify Kapoor's successor.

To ensure a long-term succession plan, the board elevated senior group presidents Rajat Monga, who handles financial management, and Pralay Mondal, who heads the focus area of retail, as executive directors.

The bank statement Monday said it has submitted its application to the RBI for approving the elevation for the two officials.

In a message to employees, its non-executive chairman Ashok Chawla said the bank is "transiting through a process of change", but stressed that its fundamentals are "rock solid".

"The management continues to take all necessary measures for the change management to progress seamlessly," he said.

The bank's stocks were trading 5.07 percent up from the previous close at Rs 192.75 a piece on the BSE at 1413 hrs.

Updated Date:

also read

Bank of Baroda recruitment 2021: Vacancies open for 511 HR posts; check bankofbaroda.in for details
India

Bank of Baroda recruitment 2021: Vacancies open for 511 HR posts; check bankofbaroda.in for details

The last date to apply is 29 April. Candidates are advised to check the eligibility criteria, age limit, and other important details on the official website

Sensex climbs 300 points after RBI policy outcome; Nestle India, Bharti Airtel among top gainers
Business

Sensex climbs 300 points after RBI policy outcome; Nestle India, Bharti Airtel among top gainers

RBI Governor Shaktikanta Das said the Monetary Policy Committee kept its estimate for economic growth unchanged at 10.5 percent for the current fiscal

RBI keeps interest rates unchanged as economy faces threat amid growing COVID-19 cases
Business

RBI keeps interest rates unchanged as economy faces threat amid growing COVID-19 cases

RBI governor Shaktikanta Das said the Monetary Policy Committee kept its estimate for economic growth unchanged at 10.5 percent for the current fiscal