Yes Bank promoters seek board overhaul, Chandrashekhar may quit

Yes Bank promoters seek board overhaul, Chandrashekhar may quit
Yes Bank promoters seek board overhaul, Chandrashekhar may quit

In a clean-up exercise, Yes Bank is expected to overhaul its board after receiving nod from its promoters, according to people aware of the development.

Former telecom secretary R Chandrashekhar (in pic) is also likely to resign from the board, one of the persons cited earlier said.

The Yes Bank's nomination & remuneration committee is reviewing the performance of the board members.

As per the preliminary information available, both the promoter groups led by its managing director and chief executive officer 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 the same, the people noted.

Earlier last week, former State Bank of India chairman OP Bhatt resigned from the panel set up by the bank to find a successor for Rana Kapoor.

Bhatt is under the Central Bureau of Investigation’s scanner in connection with loans given to the now defunct Kingfisher Airlines.

Also on Nov. 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 central bank has asked the private sector lender to find a replacement for its founder managing director and chief executive officer by January 31.

Last month, Yes Bank had said the search panel has finalised the potential candidate profile.

The RBI, it seems, has found corporate governance issues and under-reporting of non-performing assets, which has led to a series of negative developments in the private sector lender's functioning in the recent past.

As per the bank's website, Yes Bank currently has seven board members—Rana Kapoor, Lt General Mukesh Sabharwal, Brahm Dutt, Subhash Kalia, Ajai Kumar, Pratima Sheorey and Rentala Chandrashekhar.