Yes Bank Managing Director and CEO Rana Kapoor is unlikely to be in the fray for the post of chairman which fell vacant following the resignation of Ashok Chawla earlier this month, sources said Thursday.
Yes Bank Managing Director and CEO Rana Kapoor is unlikely to be in the fray for the post of chairman which fell vacant following the resignation of Ashok Chawla earlier this month, sources said Thursday. Besides, as Kapoor still remains the head of the bank until January next year, the possibility of him proposing for the chairman post looks bleak, added the sources. Chawla, a former bureaucrat, had resigned from the post of non-executive chairman, which, according to sources, was triggered in the wake of controversy on his continuance on the board of the bank while his name appeared in a CBI chargesheet in the Aircel-Maxis case.
“Yes Bank announces that Ashok Chawla, non-executive independent part-time chairman, has tendered his resignation from the bank’s board, with immediate effect, mentioning that during the current transition period, the bank would need a chairman who could devote more time and attention,” the bank had said on his resignation. The private sector lender will recommend the name of new chairman for approval by the RBI after the meetings of the Nomination and Remuneration Committee (N&RC) and the board of directors scheduled for December 13. The bank has seen the exit of three independent board members, including Chawla, in November. Rentala Chandrashekhar, former telecom secretary, and Vasant Gujarathi were the two others members who quit the board.
Also, one new member — Uttam Prakash Agarwal — has joined the board, taking the current strength to seven. Also, Yes Bank’s Search and Selection Committee (SSC) and the N&RC are scheduled to meet on December 12 to discuss the final shortlist for new MD & CEO appointment as Kapoor cannot continue beyond January 31, 2019, as the RBI earlier in September declined to give him extension beyond this period. It is also learnt that the bank will suggest the name of candidates for the MD & CEO post to the RBI by mid-December. Continuing the slide further, the stock of Yes Bank witnessed an intra-day fall of 9.5 per cent but managed to close the session lower by 0.77 per cent at Rs 160.45 on the BSE following ratings downgrade by Moody’s Investors Service, ICRA and CARE.