Yes Bank chairman looks to restore its investor confidence

MUMBAI: Yes Bank chairman Ashok Chawla has written to employees asking them to go beyond their assigned roles to clarify retail investors’ doubts and build a deeper relationship with every borrower.

Chawla’s letter comes after the Reserve Bank of India (RBI) cut short managing director Rana Kapoor’s term to January 31. Stocks fell steeply over the past few weeks, before making a recovery on Wednesday.

Chawla, in an internal letter to staff on Monday, said the bank is “transiting through a process of change”. “Our most immediate focus is in ensuring continued and uninterrupted services to our customers ..... Retail investors may approach you with request for clarifications. Irrespective of your assigned role and responsibilities, it should be your endeavour to respond to them with fullest ownership and agility. Use each customer engagement as an opportunity to build a deeper relationship,” Chawla said to the bank’s 20,000 staff in his letter, a copy of which has been reviewed by Mint.

RBI on September 17 rejected the board’s request for a threeyear extension for Kapoor till August 31, 2021. The board met on September 25, stating that it will ask RBI to grant an extension of eight months for Kapoor.

However, the board’s decisions and assurances on the bank’s asset quality to investors could not stop a crash in the bank’s stock between August 20 and September 28, the last market day before Chawla sent the letter. Yes Bank’s shares tumbled by a staggering 59% from its high of ₹404 to ₹166.15 apiece on BSE. The stock has slightly recovered but is still trading 47% down from its August 20 levels.

Chawla, in his letter urged staff to also communicate the facts about the bank to their friends and family members so as to enlist their support and encouragement in this phase.