Chandrashekhar quits YES Bank board
Move follows approval from promoters for an overhaul of the board
YES Bank’s independent director Rentala Chandrashekhar put in his papers on Monday. Besides, the private sector lender is expected to overhaul its board after receiving nod from its promoters, sources said. The bank cited personal reasons for Chandrashekhar's resignation.
In a third resignation from the YES Bank board, independent director Rentala Chandrashekhar put in his papers on Monday, according to a regulatory filing. This comes as the bank received the approval from its promoters for an overhaul of its board.
“We would like to inform that Rentala Chandrashekhar, non-executive, independent director has tendered his resignation from the board of directors of YES Bank on November 19 with immediate effect,” the bank said in the filing.
The bank cited personal reasons for Chandrashekhar’s resignation.
“The Nomination & Remuneration Committee of the bank will look for a suitable replacement in the field of Information Technology & Cyber Security in terms of applicable provisions of Sebi regulations, Companies Act and RBI Act,” it further said.
YES Bank’s Nomination & Remuneration Committee is reviewing the performance of the board members, according to the sources.
Both the promoters’ groups led by its Managing Director (MD) and Chief Executive Officer (CEO) Rana Kapoor and Madhu Kapur are in favour of a clean-up and overhaul of the YES Bank board.
A board meeting was held on November 13 and the latest developments are the result of it, the sources said.
“The new board members will be acceptable to both the promoters groups. Both promoters are in favour of overhauling the YES Bank board to weed out underperforming members and address past governance issues,” they said.
Last week, former State Bank of India Chairman O P Bhatt resigned from the panel set up by the bank to find a successor to Rana Kapoor.
Bhatt is under Central Bureau of Investigation’s (CBI’s) scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya. Besides, he is also on the global board of Standard Chartered Bank which made a case of conflict of interest.
Also on November 14, its non-executive chairman Ashok Chawla had resigned as his name figured in a CBI chargesheet filed in the Aircel-Maxis case.
Another independent director Vasant Gujarathi too tendered his resignation on the same day.
The Reserve Bank of India (RBI) has asked the private sector lender to find a replacement for its founder MD and CEO by January 31.
Last month, YES Bank had said the search panel has finalised the potential candidate profile.
The RBI, it is learnt, has found corporate governance issues and underreporting of non-performing assets, which has led to a series of negative developments in the private sector lender’s functioning in the recent past.
The bank currently has seven board members — Rana Kapoor, Lt General Mukesh Sabharwal, Brahm Dutt, Subhash Kalia, Ajai Kumar, Pratima Sheorey and Rentala Chandrashekhar, according to the bank's website.