Yes Bank’s Search For New Chief Unaffected By Board Member Resignations
The bank said that the selection process was on track and as per committed timelines.
Yes Bank has said that their search for a new managing director and chief executive officer will remain unaffected after three of its board members resigned over the past week.
“The above resignations bear no impact on the new MD, CEO selection process,” the Mumbai-based lender said in a statement late Tuesday night. “Therefore, the selection process is on track, as per committed timelines.”
The private lender’s board has seen a series of resignations including Ashok Chawla, Vasant Gujarathi and most recently Rentala Chandrashekhar. Bloomberg reported that Chandrashekhar resigned as he was unhappy with the developments taking place in the recent past and the way they were handled. Even OP Bhatt, a member of the search and selection committee for the new chief executive officer, recently stepped down citing a potential conflict of interest.
Yet, the bank remains confident that its board is strong enough to pull through this period. It has added Uttam Prakash Agarwal, former president of the Institute of Chartered Accountants of India, as the new board member concurrently.
All the seven board members are fully committed to discharging their duties on the board, as also enabling Yes Bank to manage and emerge from the current transition period.Yes Bank
The search and selection committee is scheduled to convene on Dec.12 to discuss the final shortlist for new MD and CEO appointment, the bank said in the release. The committee is headed by independent director Brahm Dutt. Other members include Lt General Mukesh Sabharwal (Retd), independent director; Subhash Chander Kalia, non-executive non-independent director; and TS Vijayan, former chairman of IRDAI and Life Insurance Corporation of India.
The Reserve Bank of India has asked co-founder and CEO Kapoor to step aside by the end of January. The authority is taking action against several banks as part of its efforts to root out a system-wide legacy of shoddy lending that has resulted in ballooning bad debts.
Yes Bank has also reiterated that the mutual resolution between its largest stakeholder Rana Kapoor and co-promoter Madhu Kapur were under way.