RBI to Yes Bank: Name new CEO by Feb 1
rejecting Yes Bank’s request to extend managing director (MD) and chief executive officer (CEO) Rana Kapoor’s tenure, the Reserve Bank of India (RBI) directed the bank to appoint his successor by February 1, 2019.
“The Reserve Bank of India has reaffirmed that a successor to Rana Kapoor should be appointed by February 1, 2019,” the private sector lender said in a statement to stock exchanges on Wednesday.
In June, Kapoor had sought a three-year extension till 31 August 2021, but the regulator had agreed to extend his term only till January 31, 2019.
On September 25, the bank’s board said that it would ask RBI to grant eight months’ extension to Kapoor.
It said that it will first seek Kapoor’s extension till April 30 so that he could help finalize the financial statements for the year ending March 31, 2019. Thereafter, it would apply for yet another extension till September 30 so that Kapoor could preside over the annual general meeting.
“The board also decided that, given the role of Rana Kapoor as MD and CEO since inception of the bank in 2004, and the time consuming challenges of finding a suitable successor, the incumbent MD and CEO be given further time in his current position beyond January 31, 2019,” the statement had said.
On Wednesday, the bank reiterated that the managing and chief executive officer will be fully guided by the board of directors, the RBI and other relevant stakeholders. “Further as stated in the bank’s release dated October 11, 2018, the search and selection committee has mandated Korn Ferry to assist the committee in evaluating both internal and external candidates.” It added that the committee is targeting to complete this recruitment process by mid-December 2018.
As part of the succession plan, the board had decided to elevate Rajat Monga and Pralay Mondal as executive directors, subject to RBI approval. Both Monga and Mondal are considered to be front runners for the top job.
Meanwhile, Mint reported on October 8 that Yes Bank Ltd’s estranged promoters—Rana Kapoor and Madhu Kapur —have initiated moves to reach an out-of-court settlement, citing three people close to the development.
Both sides have begun preliminary talks to withdraw a longdrawn and bitter legal case against each other and put an end to their decade-old feud.