Yes Bank on Wednesday said its board on December 13 will recommend names for new chairman to be approved by the 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 its Nomination & Renumeration Committee (N&RC) of the board and the board of directors are scheduled to meet on December 13. During the meetings, they would consider proposals for appointment of independent directors and also recommend name(s) of the new chairman for approval to the RBI, it added.
Yes Bank also reiterated that it is on track to find a successor to MD and chief executive Rana Kapoor and said the resignations of 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 has inducted Uttam Prakash Agarwal into its board, taking the current strength to seven members.Yes Bank’s search & selection committee (SSC) and the N&RC are scheduled to meet on December 12 to discuss the final shortlist for new MD&CEO appointment. In September, the RBI decided against any extension for Rana Kapoor to continue as MD and CEO beyond January 31, 2019, and asked the bank to find a replacement.
According to sources, the RBI did not want him to continue on the position due to under-reporting of bad loans as well as laxity in corporate governance. Stock of Yes Bank was trading at Rs 162.55, down 11.25%, on BSE.