Ashok Chawla who was appointed as the bank’s non-executive Chairman in 2016 has resigned with immediate effect. According to the reports, the resignation comes after the Central Bureau of Investigation (CBI) released a charge sheet against Chawla over corruption.
While his resignation comes after the corruption charges against him, Chawla attributed personal reasons for his resignation. Chawla’s resignation has been accepted by the bank as a good corporate governance move. A person from the bank, on the condition of anonymity shared with media that the bank has accepted Chawla’s resignation and this step will help Yes Bank removing uncertainties revolving around its board and facing uncomfortable questions regarding the corruption case and possibly be perceived by investors and regulators as a responsible move.
Apart from Chawla, Vasant Gujarathi has tendered his resignation as an independent director of the bank with immediate effect, due to personal commitments. Uttam Prakash Agarwal has been appointed as an additional director.
It is reported that after Chawla’s resignation, shares of Yes Bank toppled by 5 percent. The private sector lender is already in the midst of finding a successor to its Managing Director and CEO Rana Kapoor. Now after Chawla’s resignation, the bank has to search for a new Chairman too. The bank shall in due course announce the appointment of a chairman, post RBI’s approval,” Yes Bank said.