Yes Bank had announced on September 17 that the RBI has directed Rana Kapoor to step down as the MD and CEO of the bank by January 31, 2019.
The Reserve Bank of India has turned down the request by the board of Yes Bank to extend Rana Kapoor’s tenure as the chief executive officer until September 2019, according to stock market disclosure on Wednesday.
“The Reserve Bank of India has reaffirmed that a successor to Rana Kapoor, MD & CEO, Yes Bank, should be appointed by Feb. 1, 2019. As communicated by the bank in the press release dated Sept. 24, 2018, the MD & CEO will be fully guided by its board of directors, the Reserve Bank of India and other relevant stakeholders,” Yes Bank said in the filing on BSE.
The private sector lender had announced on September 17 that the central bank has directed Rana Kapoor to step down as the MD and CEO of the bank by January 31, 2019. The directive of RBI came after the bank attempted to appoint Kapoor for another three years.
Soon after the diktat by the banking regulator, Yes Bank board wrote to RBI, seeking Kapoor stay till September 2019 to complete annual general meeting formalities. However, the RBI has again turned down the request. Now, Yes Bank is left with no option but find Kapoor, successor, immediately.
Yes Bank has already started the process to find Kapoor’s successor. It has set up a search committee, which would consist of three existing members of the Nominations and Remuneration committee of the board as well as two external experts.
Last week, Yes Bank announced that it has appointed headhunter Kon Ferry to assist in finding CEO Rana Kapoor’s successor.
On Wednesday, shares of the bank closed at Rs 231.75, down 6.85% from their previous close on BSE. Stocks opened at Rs 248.80 apiece and touched an intraday high of Rs 254.80 and intraday low of Rs 228.85.
Meanwhile, In a choppy trading session observed on Wednesday, the 30-shares Sensex closed 382 points lower, even as the broader Nifty closed below the psychological 10,500 level as financials and NBFC stocks dragged.