Board exits not to hurt MD selection process: Yes Bank

Mumbai: In the wake of recent exits from the board, Yes Bank on Wednesday said that the resignations “bear no impact” on the process of selection of the successor to managing director and chief executive officer Rana Kapoor. “…the new MD & CEO selection process is on track, as per committed timelines,” the bank said on Wednesday.

The search and selection committee and the nomination and remuneration committee will meet on December 12 to consider the shortlisted candidates.The board will then meet the following day to discuss the appointment of two independent directors in place of those who have quit, shortlist a director with expertise in information technology and cyber security as a replacement to Rentala Chandrashekhar, review the progress on selection of candidates to head the bank, and evaluate the candidates for the position of chairman for approval by the Reserve Bank of India, the release said.

On Tuesday, Chandrashekhar stepped down as an independent director, marking the third exit in a week. His exit followed the resignation of Ashok Chawla, the non-executive chairman, and Vasant Gujarathi, another independent director.Chawla said that during this transition, the bank would need a chairman who could devote more time and attention.

Subsequently, media reports suggested that the private sector bank is expected to overhaul its board, after receiving approval from its promoters, to weed out under-performing members and address past governance issues.Besides Kapoor, Brahm Dutt, Mukesh Sabharwal, Ajai Kumar, Subhash Kalia, Pratima Sheorey, and Uttam Prakash Agarwal constitute the rest of the board.

“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,” the release said.Amidst these exits, O.P. Bhatt, external member of Yes Bank’s search and selection committee, also resigned citing potential conflict of interest. This led the nomination and remuneration committee to continue with the existing members.

The RBI has asked the bank to appoint a successor to Kapoor by Feb 1.Yes Bank had sought an extension for Kapoor till Sep 30, after RBI cut his new term from three years to just five months ending on Jan 31. The committee comprises three existing board members from the nomination and remuneration committee and one external member, T.S. Vijayan, former chairman of Insurance Regulatory and Development Authority of India.

Yes Bank also said that efforts are underway for mutual resolution between promoter Kapoor and co-promoter Madhu Kapur, to ensure “better support and coordination by the two promoter groups with the board of directors of the bank”.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal