Yes Bank's Search & Selection Committee, assisted by a global leadership advisory firm, will evaluate both internal and external candidates to succeed Rana Kapoor
New Delhi: Private sector lender Yes Bank Ltd. on Monday released a part of its unaudited financial statement for Q2 of FY19 and said that gross bad loan ratio fell 47 basis points (bps) year-on-year (y-o-y) to 1.35%. Gross bad loan ratio is total non-performing assets (NPAs) as a percentage of gross advances.
Following the announcement, shares of Yes Bank rose and at 2:52 pm, they were trading at ₹ 196 on the Bombay Stock Exchange (BSE), up 6.84% from their previous close.
In a statement to the stock exchanges, Yes Bank said, over the past few days, “some unfounded speculation 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".
The bank said that while its deposits grew 41% y-o-y to ₹ 2.23 trillion, loans and advances grew 61.5% y-o-y to ₹ 2.4 trillion in the September quarter of FY19. It added that its domestic loans saw a 56.4% y-o-y growth in the same period.
Releasing this data on financial performance ahead of the official announcement for the September quarter, it said these numbers were subject to approval by the audit committee of the board and review by the statutory auditors of the bank.
On succession planning, the bank said the two external experts of the ‘search and selection committee’ would be finalized by 7 October. The committee, it said, would be assisted by a global leadership advisory firm that would evaluate both internal and external candidates and make suitable recommendations to the board of directors for submission to the Reserve Bank of India (RBI).
The lender also said that the bank had submitted its application to the RBI for its approval on appointing two senior bankers – Rajat Monga and Pralay Mondal – as executive directors.
Mint reported on 1 October that Yes Bank’s decision to request the regulator to extend Managing Director Rana Kapoor’s tenure was not in the best interests of the lender, citing a letter by Madhu Kapur, widow of co-founder Ashok Kapur and the bank’s second largest shareholder, to the board.
On 25 September, the board of Yes Bank had said it would ask the RBI to extend Kapoor’s tenure by eight months. The board decided it would first seek an extension for Kapoor till 30 April 2019 for finalization of financial statements for the year to 31 March, and thereafter a further extension till 30 September for completing the annual general meeting process.
The bank’s board decided on the course of action after the RBI agreed to extend Kapoor’s tenure till 31 January 2019 in response to the bank’s request for a three-year extension till 31 August 2021.
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