Yes Bank promotes 3 execs as whole-time directors

Written by fe Bureau | Mumbai | Updated: Jun 29 2013, 05:48am hrs
Even as the controvery over appointment of Shagun Gogia, daughter of late co-founder Ashok Kapur, on the Yes Bank board continues, the bank has elevated three executives as whole-time directors on the board.

The decision was taken at Thursdays board meet which was to consider the nomination of Shagun Gogia on the board. The Bombay High Court had asked the meet be brought forward to this week from the earlier scheduled date of July 24.

While decision on Gogia will be communicated directly to the court, the bank announced Rajat Monga, Sanjay Palve and Pralay Mondal will be elevated to the position of wholetime directors.

This is to further build and strengthen the institutional and professional character of Yes Bank as the Professionals Bank of India, said the bank in a release. Their appointment will be effective on approval from RBI, and subject to approval of the shareholders, they added.

Rajat Monga is currently Yes Bank CFO while Sanjay Palve and Pralay Mondal are senior group presidents for wholesale and retail banking respectively.

The decision gains significance in wake of the ongoing controversy sparked by the nomination of three additional directors on the board. Challenging that nomination, Madhu Kapur, wife of late Ashok Kapur and mother of Shagun Gogia, had filed a case saying they had not been consulted on the nomination. Subsequently, Shagun Gogia filed her papers for a nomination on the board for the second time since 2009.

CEO & MD Rana Kapoor holds 13.7% stake in Yes Bank while Madhu Kapur and her family hold close to 12%.

Sources close to the bank suggest Gogia may not be considered fit & proper for the board under RBI criteria. The Kapur family, however, has suggested that RBIs criteria is broad and does not exclude Gogia from being considered. They have also indicated they may be willing to nominate someone else on the board as long as their nomination is duly considered. The Bombay High Court will hear the case on July 1.