Ravneet Singh Gill, who now heads Deutsche Bank India, will be the new managing director & CEO of Yes Bank. He will succeed Rana Kapoor, whose term ends on January 31.
Gill is expected to join the private sector lender by March 1.
Last September, the Reserve Bank had asked Kapoor, who is one of the promoters of the private sector lender along with his sister-in-law, to leave office by the end of this month.
“The bank has received Reserve Bank’s approval for new managing director and chief executive Ravneet Gill. He can join on or before March 1, 2019,” Yes Bank said in a statement on Thursday.
It further said the board will meet on January 29 to finalise the interim transition.
“The board will, inter alia, finalise the delegation of powers for transition management in the interim period commencing from February 1, 2019 until Ravneet Gill assumes office,” the bank said.
The announcement sent the Yes Bank counter rallying over 8.39 per cent to close at Rs 213.85 on the Bombay Stock Exchange on Thursday.
Yes Bank’s shares had lost more than two-thirds of its value after the RBI asked the lender to find a substitute for Kapoor. Even after Thursday’s rally, the stock is almost 40 per cent below its 52-week high.
While reports had earlier suggested that Yes Bank’s senior group president (financial markets) Rajat Monga was also in the race, the private sector lender said “Gill was the number one priority candidate in the submissions made by the bank to the RBI on January 10, 2019’’.
“I am extremely pleased to welcome Ravneet Gill as the new MD & CEO of Yes Bank and also convey our finest appreciation to the RBI for its expeditious approval in less than three weeks,” Kapoor said.
“I am certain that his diverse, comprehensive experience as a career banker will provide significant confidence & conviction to all stakeholders, including employees, customers and investors,” he added.
Gill has been with Deutsche Bank AG for more than 25 years. He has headed all key banking functions, including corporate banking, capital markets and treasury solutions (CMTS), investment banking and retail & private banking at the bank. Recently, he was re-appointed as the managing director & CEO of Deutsche Bank India for the third term by the RBI.
Profit drops
Yes Bank has reported a near 7 per cent drop in net profit for the third quarter ended December 31, 2018. Net profit of the lender came in at Rs 1,001.85 crore against Rs 1,076.87 crore in the corresponding period of last year.
Provisions rose to Rs 550.23 crore from Rs 421.32 crore in the year-ago period.
The bank said the rise in provisions was due to Rs 570.8 crore of accelerated provisioning on exposure to a “stressed infrastructure conglomerate’’.
The bank has an exposure of Rs 2,529.73 crore to the IL&FS group. The slippages on this account stood at Rs 1,913 crore or almost 76 per cent of the total exposure.
