News: YES Bank denies running parallel business with Rana Kapoor’s Family Office

#Corporate

YES Bank denies running parallel business with Rana Kapoor’s Family Office

The National Stock Exchange had sent a notice to Yes Bank, seeking its response to allegations that Rana Kapoor's family office was running a parallel lending or investing business.
YES Bank denies running parallel business with Rana Kapoor’s Family Office

Yes Bank, which is currently in the eye of a storm over its succession planning, denied any dealings with the Three Sisters Family Office, which is run by the bank’s founder CEO Rana Kapoor’s three daughters Radha Rana Kapoor, Raakhe Rana Kapoor, and Roshini Rana Kapoor. 

The National Stock Exchange had sent a notice to the bank, seeking its response to allegations that Kapoor’s family office was running a parallel lending or investing business, by compromising the interest of YES Bank. 

The bank has been reeling under uncertainty over its next CEO after RBI cut short Rana Kapoor's tenure to January 31, 2019. 

Also, in another query raised by the NSE over NPAs, The bank has also denied any window dressing of corporate accounts to conceal non-performing assets.

YES Bank said in its filing, “The bank is subject to the annual risk-based supervision exercise by the Reserve Bank of India, which entails a comprehensive review of all aspects of bank’s functioning. As mandated and required under regulations, the bank has been making all disclosures to stakeholders on NPA divergence-related finding. This is validated by our statutory auditor BSR & Co on a quarterly basis.” 

Meanwhile, the bank's board this week decided to request RBI for at least a three-month extension for Rana Kapoor, Managing Director and Chief Executive Officer, beyond January 31, 2019. The bank’s board has also formed a five-member panel to find a successor to the founder CEO. 

While the bank has also set up a Search & Selection Committee comprising of three existing nomination and remuneration committee board members plus two external experts to identify a new Managing Director & CEO as a successor to Kapoor, it has expressed the challenges in searching a new MD & CEO in less than four months’ time. Therefore, it is knocking RBI’s door for extending Kapoor’s exit deadline. 

Yes Bank in a statement said, “The board also decided that given the role of Rana Kapoor as MD&CEO since inception of the bank in 2004, and the time consuming challenges of finding a suitable successor, that the incumbent MD&CEO be given further time in his current position beyond January 31, 2019.”

It added, “Accordingly, it was decided that RBI be requested for an extension upto minimum April 30, 2019, for finalization of audited financial statements for fiscal year ending 2019, thereafter subject to RBI approval up to September 30, 2019.”

Image Credits: Fortune India

Topics: #Corporate, Leadership

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