Yes Bank finalizes potential candidates to replace MD & CEO Rana Kapoor
Yes Bank stated that it has shortlisted the names of potential candidates to succeed MD and CEO Rana Kapoor, whose term expires on January 31. The bank, however, did not disclose the names of the shortlisted candidates for the top post.
In the filing, Yes Bank stated, “Pursuant to the recommendations of Search & Selection Committee (S&SC) and Nomination and Remuneration Committee (NRC), the Board of Directors of the bank at its meeting on Wednesday has finalized names of potential candidates for the position of MD and CEO.”
The private lender further added that as mandated under the extant RBI norms, the board will submit an application to the central bank on Thursday, seeking approval for the appointment of the new MD and CEO.
The Reserve Bank has asked the private sector lender to find the replacement of Rana Kapoor, who will continue as the MD and CEO till January 31.
While the bank did not disclose the names of potential candidates, however, it will make the necessary disclosures to the stock exchanges, after it receives RBI's approval.
Meanwhile, as per a Mint report, the bank has independently finalized these candidates without without the consent of the two estranged promoters of the bank—Madhu Kapur and Rana Kapoor. However, its articles of association (AoA) states that the appointment of any whole-time director of the bank will require the joint approval of the two promoters.
Given the turn of events, the next few days will be significant as to how the board is able to find a replacement who has both the promoters’ as well as the RBI’s approval. It is a much needed development given the spate of resignations which have rocked the bank in the previous few months. Last November, former SBI Chairman OP Bhatt resigned from the SSC panel. Bhatt’s resignation came just a day after Yes Bank's non-executive chairman Ashok Chawla resigned as his name came up in a CBI charge sheet filed in the Aircel-Maxis case. In the same month, an independent director, R Chandrashekhar stepped down from the board.