Yes Bank Ltd. Managing Director and Chief Executive Officer Rana Kapoor is unlikely to be in the fray for the post of chairman which fell vacant following the resignation of Ashok Chawla earlier this month, according to people aware of the development.
Besides, as Kapoor still remains the head of the bank until January, the possibility of him proposing for the chairman post looks bleak, added the sources.
Chawla, a former bureaucrat, had resigned from the post of non-executive chairman, which, according to sources, was triggered in the wake of controversy on his continuance on the board of the bank while his name appeared in a Central
Bureau of Investigation chargesheet in the Aircel-Maxis case.
In its statement, the bank said that Chawla was stepping down as the bank would need a chairman who can devote more time to the lender during the upcoming management transition.
The private-sector lender will recommend the name of a new chairman for approval by the after the meetings of the Nomination and Remuneration Committee and the board of directors scheduled for Dec.13.
The bank has seen the exit of three independent board members, including Chawla, in November. Rentala Chandrashekhar, former telecom secretary, and Vasant Gujarathi were the two others members who quit the board.
Also, one new member—Uttam Prakash Agarwal—has joined the board, taking the current strength to seven.
Yes Bank's Search and Selection Committee and the nomination and remuneration committee are scheduled to meet on Dec. 12 to discuss the final shortlist for new managing director and chief executive officer appointment. Kapoor cannot continue beyond Jan. 31, 2019, as the RBI earlier in September declined to give him extension beyond this period.
It is also learnt that the bank will suggest the name of candidates for the MD & CEO post to the RBI by mid-December.
Continuing the slide further, the stock of Yes Bank witnessed an intra-day fall of 9.5 per cent but managed to close the session lower by 0.77 per cent at Rs 160.45 on the BSE following ratings downgrade by Moody's Investors Service, ICRA and CARE.
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