Yes Bank Promoters Seek Board Overhaul, R Chandrashekhar Resigns
In a clean-up exercise, Yes Bank Ltd. is expected to overhaul its board after receiving nod from its promoters, according to people aware of the development.
Former Telecom Secretary R Chandrashekar has resigned from the board with immediate effect for personal reasons, the bank said in a notification to the exchanges.
The Yes Bank's Nomination & Remuneration Committee, the people said, is reviewing the performance of the board members.
As per the preliminary information available, both the promoter groups led by its Managing Director and Chief Executive Officer Rana Kapoor and Madhu Kapur are in favour of a clean-up and overhaul of the Yes Bank board.
A board meeting was held on Nov. 13 and the latest developments are the result of the same, the people noted.
The new board members will be acceptable to both the promoter groups, which are in favour of overhauling the Yes Bank board to weed out under-performing members and address past governance issues, according to people aware of the development.
Earlier last week, former State Bank of India Chairman OP Bhatt resigned from the panel set up by the bank to find a successor for Rana Kapoor.
Bhatt is under the Central Board of Investigation’s scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya.
Also read: Ashok Chawla Steps Down As Yes Bank Chairman
Also on Nov. 14, its non-executive chairman Ashok Chawla had resigned as his name figured in a CBI chargesheet filed in the Aircel-Maxis case. Another independent director Vasant Gujarathi, too, tendered his resignation on the same day.
The central bank has asked the private sector lender to find a replacement for its founder managing director and chief executive officer by Jan. 31.
Last month, Yes Bank had said the search panel has finalised the potential candidate profile.
The RBI, it seems, has found corporate governance issues and under-reporting of non-performing assets, which has led to a series of negative developments in the private sector lender's functioning in the recent past.
The bank currently has seven board members—Rana Kapoor, Lt General Mukesh Sabharwal, Brahm Dutt, Subhash Kalia, Ajai Kumar, Pratima Sheorey and Rentala Chandrashekhar, as per the bank's website.