RBI has asked Yes Bank to find a replacement for Chief Executive Officer Rana Kapoor by 31 January, 2019. 

Yes Bank Recommends Brahm Dutt For Chairman

Yes Bank Ltd. has recommended to the Reserve Bank of India the name of its board member Brahm Dutt for the post of chairman, sources said.

The Chairman post fell vacant after resignation of Ashok Chawla in November following issues related to probity.

"The bank has sent the name of Dutt to the RBI for the Chairman post," a source said on Tuesday. Since Dutt is already a part of the bank and understands various aspects of the system in a better way, it would be good to have him as the chairman, sources said.

Also read: Ashok Chawla Steps Down As Yes Bank Chairman

The bank's spokesperson could not be reached for comments. Dutt, a retired bureaucrat, is currently an independent director on the bank's board, which has eight members.

The other board members are Managing Director and Chief Executive Officer Rana Kapoor, Lt. General Mukesh Sabharwal, Subhash Kalia, Ajai Kumar, Pratima Sheorey, Uttam Agarwal and TS Vijayan.

Vijayan, former LIC and IRDAI chief, was inducted into the board only recently along with Agarwal who is a chartered accountant with expertise in taxation, finance and restructuring.

Also read: Yes Bank Looks To Blame Rival For Bad Press

Besides, the bank has to recommend name(s) for the post of managing director and chief executive officer to the RBI as Kapoor has been denied extension post Jan. 31, 2019 by the the central bank.

As per sources, the RBI has flagged issues related to corporate governance as well as under-reporting of bad loans.