The board of Yes Bank Ltd. on Wednesday said it has selected potential candidates to replace Founder and Chief Executive Officer Rana Kapoor, without naming the people.
On the recommendation of the search and selection committee, the board finalised names of potential candidates for the position of managing director and chief executive officer, the private lender said in its filing. The company will submit an application to the Reserve Bank of India on Jan. 10 seeking approval for the appointment of the new MD and CEO, and make requisite disclosures to stock exchanges once its gets the RBI's nod.
BloombergQuint could not confirm the names of the selected candidates.
Yes Bank Sans Rana Kapoor
Rana Kapoor is set to step down as CEO of the bank he co-founded at the end of January. This, after the RBI denied him an extension. While Yes Bank has seen rapid growth over the last decade, Kapoor's leadership came into question after the regulator pointed out discrepancies in the way the bank reported its bad loan numbers.
With Kapoor set to exit, the bank needs to finalise a new chief executive by January 31, when Kapoor's term ends. Before that, the ‘Indian Partners' of the bank, which includes the family of late Ashok Kapur, will also need to come to an agreement as nomination rights rest jointly with the two families.
Bringing in a credible leader is critical to address the governance concerns that emerged after board members stepped down and raised concerns about practices at the bank.
On Nov. 14, Chairman Ashok Chawla resigned with immediate effect citing lack of time in the face of an upcoming period of transition. On Nov. 20, independent director R Chandrashekhar quit saying he was concerned about recent events at the company, Bloomberg had reported. At its last board meet in December, the bank picked a new interim chairman but did not disclose his name. According to media reports, Brahm Dutt, a long standing independent director on the board of Yes Bank, was picked as the interim chairman.
Soon after, credit rating agencies ICRA and Moody's Investor Service downgraded the lender on the back of corporate governance concerns. These concerns have weighed on the shares of Yes Bank, which have underperformed the broader NSE Nifty Bank Index since mid-October.
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