Shagun role

It remains to be seen if the Madhu Kapur group nominates Shagun Gogia (daughter of Ashok Kapur) to the board. In 2009, the Kapurs wanted to induct Gogia as a board member, but it did not find favour with the bank board which felt she did not meet the RBI’s criteria. Later again in 2013, the board had rejected the application.

As on December 31, 2018, Rana Kapoor held 4.32 per cent in Yes Bank, while Madhu Kapur had a 7.58 per cent stake. Kapoor’s associate firms Yes Capital and Morgan Credits held 3.27 per cent and 3.04 per cent, respectively. Kapur’s Mags Finvest held 1.16 per cent.

Yes Bank further said its board had recommended the name of a senior board member to the RBI to temporarily hold the office of the MD & CEO as an interim special duty officer.

The bank is understood to have named Ajai Kumar, non-executive non-independent director on its board, as an interim MD & CEO for the RBI’s recommendation.

Last week, Yes Bank had appointed Deutsche Bank India head Ravneet Singh Gill as its managing director & chief executive officer as incumbent Rana Kapoor is required to step down on January 31.

The senior official will hold the position as “board director on interim special duty (MD & CEO’s responsibilities)” from February 1, 2019, till such date Ravneet Gill assumes office in March, 2019”, it said.

Yes Bank promoters Rana Kapoor and Madhu Kapur have finally smoked the peace pipe, agreeing to nominate one representative director each on the bank’s board.

In November last year, the private lender had said efforts were underway for a mutual resolution between the two promoter groups.

The near decade-old rivalry between the two camps had begun after the tragic death of Ashok Kapur in the 2008 terrorist attack in Mumbai. The matter reached the Bombay high court in early 2012 after Kapoor contested the eligibility of Madhu Kapur (widow of Ashok Kapur) as a promoter.

In a statement on Tuesday, Yes Bank said select senior directors of the board had interacted with Madhu Kapur and family. “The Madhu Kapur group and the Rana Kapoor group have agreed to nominate one representative director each on the bank’s board, subject to the completion of the necessary documentation,” the bank said, while pointing out two directors will be announced at the next scheduled board meeting in April.

“This is intended to ensure better coordination and support by the two promoter groups with the new MD & CEO and the board,” it added.

The Telegraph