YES Bank announced that its group president and former chief financial officer Rajat Monga has resigned. The announcement was made by the CEO of the YES Bank Group, Ravneet Gill, during a conference call with investors and analysts following a heavy fall in the bank's share price over the past few sessions.
"Rajat has decided to move on. For the past two years he has been carrying a lot of load and needed some time off... so has decided to leave," Gill stated.
Gill, who replaced Rana Kapoor in March after the latter's tenure was cut short by the RBI, added that the possibility of Monga taking a sabbatical was also discussed but he decided to move on. While Monga has quit as a full-time employee, he is still with the bank in an advisory capacity. Monga was the Chief Financial Officer at YES Bank at one time and was also seen as a contender for the role of MD and CEO after Rana Kapoor. He was serving as senior group president since its inception in 2004.
"Monga just felt that he was at that stage of his life and career where he needed to step back, reassess his future course personally and professionally," he added. Gill revealed that Monga wanted to leave last September, but was asked to stay due to the management change.
There were also reports which suggest that Monga and some other executives were selling the bank's shares in the open market over the past few sessions. Meanwhile, the CEO assuaged investor concerns asserting that the share price is not entirely dependent on the fundamentals and assured that the core operating performance of the bank is strong and robust.
YES Bank is battling a spike in doubtful loans, falling share price and a declining profit. The bank’s net profit in the April-June quarter fell to Rs 114 Cr from Rs 1,109 Cr in the same period a year ago. Over the past few months, it has seen a sharp erosion in its market value on account of the above factors as well as du to a series of sale of shares pledged by the bank’s co-founder, Rana Kapoor and his family-owned firms. The exit of a key official at this juncture might further add to this turbulence.