Yes Bank stated yesterday that the final recommendation for the company's Managing Director and Chief Executive will be submitted to the Reserve Bank of India after its Board meeting on January 9, 2019.
The bank stated, “The 'Search and Selection Committee' (SSC) and the Board of Directors are on track to complete the said process within the stipulated timelines of the Reserve Bank of India (RBI). The SSC has discussed and deliberated on the final shortlisted external and internal candidates presented by Korn Ferry post their comprehensive interviews and assessment. The SSC will now engage with the candidates over the next few days for finalization. The final recommendation will be submitted to the RBI by the Board of Directors post their next meeting scheduled on January 9, 2019.”
The SSC has been set up to find a successor to the company's MD and CEO Rana Kapoor. The bank had also roped in Los Angeles-based advisory firm, Korn Ferry to assist the bank’s committee in its selection of the new MD & CEO. The move came as the current MD & CEO Rana Kapoor’s term was cut short by the Reserve Bank of India (RBI).
In October, RBI had reaffirmed that a successor to Yes Bank's MD and CEO Kapoor should be appointed by February 1, 2019.
The bank, however, has seen a spate of resignations in the last few months. Last month, 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.
The bank also said it had finalized its recommendation for the role of a non-executive part-time chairman, which has been vacant since Ashok Chawla resigned and that it would promptly seek approval from the RBI. However the bank saw its shares fall down by 6.4% on the BSE, hinting at the urgency with which the markets are waiting for India’s fifth largest private-sector lender to stabilize things at the helm.