Shareholders’ nod for YES Bank MD & CEO’s re-appointment
Private sector lender YES Bank's shareholders have approved the re-appointment of Rana Kapoor as managing director and chief executive officer (CEO) for a period of three years. The shareholders also approved 11 other resolutions at the annual general meeting held on Saturday.
“The re-appointment was approved with a unanimous majority (99.97 per cent), excluding the vote of the shareholder, Madhu Kapur family,” said the bank.
Two years ago, Kapur, second-largest shareholder, had moved court, claiming her right as the bank’s co-promoter was violated and she wasn’t consulted before the lender had appointed a few directors on its board.
The appointment of M R Srinivasan as non-executive director and Diwan Arun Nanda and Ajay Vohra as independent directors has also been approved by the shareholders.
However, Srinivasan and Nanda cannot assume office till June 18 as directed by the bombay high court. Kapur had raised an objection in the court to re-appointment of these two on the grounds that independent/non-executive directors in private sector banks have to be between the ages of 35 and 70 years.
Although Srinivasan and Nanda have crossed the age limit, the bank had earlier sought the Reserve Bank of India’s approval for reappointment, granted till October 2016.
In the AGM, the shareholders also approved YES Bank’s plan to raise $1 billion (~6,400 crore) by fresh equity and ~10,000 crore through non-convertible debentures and bonds.
The bank is aiming to raise the money to grow into a “meaningful large bank by 2020”.
The borrowing limits of the bank has also been increased from ~30,000 crore to ~50,000 crore. The bank also got shareholders’ approval to increase foreign portfolio investors and foreign institutional investors limits to 74 per cent of the paid-up capital and for a dividend payout of 90 per cent (~9 a share).
“With the enabling approvals in place, YES Bank is fully geared up to capitalise on the renewed economic momentum and achieve its vision of emerging the finest large bank in India by 2020,” said Radha Singh, non-executive chairperson.