New Delhi: Yes Bank Ltd, during its 13 December board meeting, will recommend names for the chairman’s post to the Reserve Bank of India (RBI) as well as consider appointment of independent directors. The private sector lender, which is grappling with governance as well as NPA issues, has seen resignations of three independent directors, including Chairman Ashok Chawla.
In a regulatory filing, the bank said the nomination and remuneration committee of its board and the board of directors are scheduled to meet on 13 December. During the meetings, they would consider proposals for appointment of independent directors and recommend names for the chairman’s post to the central bank.
Yes Bank also reiterated that it is on track to find a successor to MD and CEO Rana Kapoor and said the resignations of the three board members will have no impact on the succession plan.
Chairman Ashok Chawla, Vasant Gujarathi and Rentala Chandrashekhar have quit the bank on various reasons including on governance issues.
In the meantime, the bank inducted Uttam Prakash Agarwal in its board taking the current strength to seven members.
Yes Bank’s search and selection committee and the N&RC are scheduled to meet on 12 December to discuss the final shortlist for the new CEO’s appointment.
In September, RBI had decided against any extension for CEO Rana Kapoor beyond 31 January 2019 and asked the bank to find a replacement. According to people aware of the matter, the central did not want him to continue on the position due to under-reporting of bad loans as well as laxity in corporate governance.
On Wednesday, Yes Bank shares fell 11.71% to ₹ 161.70 apiece on the BSE even as the benchmark Sensex gained 0.57% to end the day at 35,716.95 points.