Yes Bank plans board overhaul after 3 board members resign
20 November 2018
Private lender Yes Bank, which failed to get an extension for its managing director and chief executive officer Rana Kapoor, lost another board member after former telecom secretary R Chandrashekar also resigned from the board on Monday.
This is the third resignation after Ashok Chawla and Vasant Gujarathi resigned last week.
The Yes Bank's Nomination and Remuneration Committee, the people said, is reviewing the performance of the board members, the bank said in a notification to the exchanges.
"The Nomination & Remuneration Committee (NRC) of the bank will look for a suitable replacement in the field of IT and cyber-security," Yes Bank said in a statement confirming the report.
Yes Bank is expected to overhaul its board after receiving nod from its promoters, according to people aware of the development.
Meanwhile, rival promoter groups led by managing director and CEO Rana Kapoor and Madhu Kapur had last month proposed to combine their stakes and form a joint promoter group, in a move that could end nearly a decade of disaffection and litigation among the promoters of the private lender.
A board meeting was held on 13 November and reports said both the promoter groups were in favour of a clean-up and overhaul of the Yes Bank board.
The new board members will be acceptable to both the promoter groups, as it would aim at removing under-performing members and address past governance issues, according to people aware of the development.
Earlier last week, former State Bank of India chairman OP Bhatt resigned from the panel set up by the bank to find a successor for Rana Kapoor.
Bhatt is under the Central Board of Investigation’s scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya.
Its non-executive chairman Ashok Chawla, who resigned on 14 November, had his name figured in CBI charges filed in the Aircel-Maxis case.
The central bank has asked the private sector lender to find a replacement for its founder managing director and chief executive officer by 31 January.
The bank currently has six board members — Rana Kapoor, Lt General Mukesh Sabharwal, Brahm Dutt, Subhash Kalia, Ajai Kumar and Pratima Sheorey.