The board of Yes Bank on Tuesday sought the Reserve Bank of India’s approval to extend the tenure of Rana Kapoor, its current CEO and managing director, till September 30 next year while setting up a committee to identify a successor to Kapoor.
The RBI had recently cut short the tenure of Kapoor.
In a communication to the country’s fourth largest private sector lender on September 17, the RBI had said that Kapoor could continue as the MD & CEO till January 31 2019. Yes Bank was seeking the reappointment of Kapoor as the CEO & MD for a three-year period, starting this September. The RBI’s fiat forced the Yes Bank to rework its future plan.
In a statement, Yes Bank said the board has decided that given the role of Kapoor as MD & CEO since the inception of the bank in 2004, and the time consuming challenges of finding a suitable successor, he should be given time in his current position beyond January 31, 2019.
The lender has therefore decided to request the RBI that Kapoor be granted an extension at least till April 30, 2019 for “finalisation of audited financial statements” for the year ending March 31, 2019.
Thereafter subject to RBI’s approval, Kapoor be given time up to September 30, 2019 for the statutory annual general meeting (AGM) process to be completed, the bank added.
This period, it said, will also be key to identify and enable a new incumbent to get fully conversant with the bank and its working.
While the ball is now back in the RBI’s court, market observers feel that it remains to be seen whether the central bank accedes to the request of the bank.
According to Yes Bank, it has established a “search & selection committee”, which comprises the three existing members of the nomination & remuneration committee and two external experts to identify a new managing director & CEO.
The board also decided to elevate two senior group presidents Rajat Monga and Pralay Mondal as executive directors subject to the RBI approval.