Ajai Kumar named Yes Bank interim CEO

Ajai Kumar named Yes Bank interim CEO

FPJ BureauUpdated: Wednesday, May 29, 2019, 02:56 AM IST
article-image

Mumbai: Rana Kapoor’s reign as the managing director and chief executive of Yes Bank, which was co-founded by him, finally ended on Thursday. RBI had last September asked him to leave office by January 31 following which the board unsuccessfully sought an extension till September 2010. Yes Bank appointed its non-executive director Ajai Kumar, who had led state-run Syndicate Bank in the past, as his interim successor for a month till Ravneet Singh Gill from Deutsche Bank India takes over from March 1. The aggressive and temperamental Kapoor, who has had stints with foreign lenders earlier, had launched the bank along with his co-brother the late Ashok Kapur in the early years of the century. Kapur was killed in the 26/11 terror attack at the Trident Hotel and there was a bitter feud between Kapoor and Kapur’s heirs which played out in the courts. The two warring groups of promoters who collectively own around 20 per cent of the bank, however, reached a truce on Tuesday by agreeing to appoint one non-independent director each on the board.

But the feud with the co-promoter and the RBI action on him had the bank stock, which was one of the premium buy for long, getting whacked since last September, having lost more than two-thirds of its value since then. Kapoor is credited with building the bank by deftly deploying wads of money in sponsorships and advertisements which served the bank well in getting marquee investors to buy into the bank, along with modern banking practices. Though the RBI offered no official reasons for shortening his term, it has been attributed to the regulatory audit finding out that the bank under-reporting NPAs by a cumulative Rs 10,000 crore for two consecutive years. According to sources, the RBI had cited “serious lapses” in governance and a “poor compliance culture” at Yes Bank as reasons for its “regulatory discomfort” in allowing Kapoor to continue to head the lender. The bank has displayed “highly irregular” credit management practices, the regulator had said. Sources citing the RBI letter said the regulator also wrote about its “concern” relating to a steep hike in Kapoor’s remuneration by the board while seeking a three-year reappointment, saying it was in defiance of its earlier direction to trim CEO bonuses if asset quality was not good.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...