The board of Yes Bank Ltd. has initiated the process to set up an alternate board, more than two years after the government instituted a plan to rescue the ailing lender.
"On the back of Yes Bank's turnaround and having achieved significant progress... the board of directors appointed under the reconstruction scheme, have recommended to its shareholders, the formation of an alternate board," a press release by the bank read.
The alternate board will operate under applicable laws and regulations as opposed to current board which operates under the ambit of the reconstruction scheme.
The shareholders' annual general meeting is scheduled on July 15 to consider the relevant resolutions.
The proposed new board will include the following members:
Atul Malik
Rekha Murthy
Sharad Sharma
Nandita Gurjar
Sanjay Kumar Khemani
Sadashiv Srinivas Rao
T Keshav Kumar
Sandeep Tewari
Prashant Kumar
The two additional directors appointed by the Reserve Bank of India—R Gandhi and Ananth Narayan Gopalakrishnan—will continue up to March 23, 2023 or till further orders, whichever is earlier.
Further, State Bank of India, the largest shareholder, has proposed Prashant Kumar to continue as the managing director and chief executive officer of the bank for three more years, which will be subject to approval of the alternate board, the RBI and the shareholders.
Chairman Sunil Mehta, Mahesh Krishnamurti and Atul Bheda would not be a part of the new board, "having overseen the significant turnaround of the bank in record time and having achieved the primary purpose for which they were mandated", the press release stated.
Shares of Yes Bank gained nearly 3% to Rs 13.46 apiece on the announcement.
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