After CEO Kapoor, Yes Bank loses its Chairman Chawla

Ashok Chawla was named in a corruption charge sheet by CBI in Aircel-Maxis case.

Private lender Yes Bank’s non-executive Chairman Ashok Chawla has resigned with immediate effect.

On November 12, the Mint had reported that Yes Bank has sought advice from the RBI on the desirability of Chawla continuing in the post after being named in a corruption charge sheet by the CBI in the Aircel-Maxis case.

This follows the National Stock Exchange of India Ltd — also chaired by Chawla — vetting his continuance on similar grounds.

However, Yes Bank did not give the reason for his exit. The bank said that Independent Director Vasant Gujarathi too has tendered his resignation with immediate effect due to personal commitments.

Chawla, too, attributed his decision to personal reasons. “As I resign, I wish to thank everyone at Yes Bank…and wish the bank all the luck for the transition it is going through…,” read Chawla’s resignation letter, as cited by a media report.

Yes Bank will now have to fill the position of the chairman even as it is struggling to find a replacement for CEO Rana Kapoor, whose term was cut short by the RBI.

According to sources, representations were made by shareholders and stakeholders to the bank as well as Sebi questioning Chawla’s continuance on the board after being named in the charge sheet.

According to Moneycontrol, his exit could be the outcome of the likely conflict of interest over his multiple roles as the National Stock Exchange Chairman as well as a board member of various other companies such as Yes Bank and Jet Airways.