Yes Bank finalises potential candidates for top job to replace Rana Kapoor; new CEO's name to be disclosed after RBI approval

Yes Bank Ltd said on Wednesday it has finalised the potential candidates for the position of chief executive officer to replace the incumbent Rana Kapoor, but did not disclose names.

The private sector bank will now seek approval from the Reserve Bank of India (RBI) for the CEO appointment, and will make the relevant disclosures after the RBI’s approval, the lender said in a statement.

According to the bank, the candidates were finalised on the basis of recommendations made by the Search & Selection Committee (SSC) and the Nomination and Remuneration Committee (NRC). The SSC was mandated to evaluate both internal and external candidates and make suitable recommendations to the Board of Directors.

“As mandated under the extant RBI norms, the Bank’s Board will submit an application to the RBI on 10 January, 2019, seeking approval for the appointment of the new MD & CEO of Yes Bank,” the lender said in a regulatory filing to the BSE.

“On receipt of the RBI approval, the bank shall duly make the requisite disclosures to the stock exchanges, in terms of ‘Regulation 30 of the Listing Regulations’.”

Yes Bank’s governance was thrown into question in September when the RBI asked Kapoor to step down by the end of January, sending its stock plunging and causing several resignations from its board. The central bank had asked the lender to find a new CEO by 1 February.

In November, independent director Rentala Chandrashekhar had tendered his resignation from the board of directors of Yes Bank.

In the same month, former SBI chairman OP Bhatt resigned from the panel set up by the bank to find a successor for Kapoor. Bhatt was under CBI’s scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya.

On 14 November, the bank’s non-executive chairman Ashok Chawla had resigned as his name figured in a CBI charge sheet filed in the Aircel-Maxis case.

 Another independent director Vasant Gujarathi too had tendered his resignation on the same day over audit committee performance issues.

The RBI, it is learnt, had found corporate governance issues and under-reporting of non-performing assets, which has led to a series of negative developments in the private sector lender’s functioning in the recent past.

With inputs from agencies

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