Yes Bank appoints two more directors despite tussle over board
25 Apr 2014
Yes Bank Ltd has appointed two independent directors to its board amid an ongoing legal battle over board nominations between two of its largest shareholders.
The board of directors of Yes Bank, at its meeting on 23 April, appointed Saurabh Srivastava, a former chairman of industry lobby group Nasscom, and Vasant Gujarathi, a former partner of consultancy as directors on the bank's board.
The appointment of the new directors are ''in accordance with extant Reserve Bank of India regulations and the New Companies Act 2013'', the bank said in a statement.
It also announced the formation of two new committees - IT strategy and CSR (corporate social responsibility) - as mandated by the new Companies Law.
Srivastava will also chair the bank's IT strategy committee while Gujarathi will be a member of the audit committee, Yes Bank said in a filing with the Bombay Stock Exchange (BSE) on Wednesday.
The announcement comes at a time when Madhu Kapur, widow of the bank's co-founder, Ashok Kapur, is contesting the appointment of three other directors - MR Srinivasan, Diwan Arun Nanda and Ravish Chopra - to the bank's board.
Madhu Kapur in her petition had alleged that Srinivasan, Nanda and Chopra didn't meet the Reserve Bank of India (RBI)'s 'fit and proper' criteria. She also said the bank violated her right as co-promoter of the bank by not consulting her while appointing the three directors.
Madhu Kapur, who holds 12-per cent equity in the bank, is the wife of Yes Bank co founder late Ashok Kapur, and the sister of Yes Bank's other co-founder Rana Kapoor's wife.
In fact, Yes Bank had ignored all of Madhu Kapoor's moves and had elevated three senior management executives - Rajat Monga, Sanjay Palve and Pralay Mondal-to the board after Madhu Kapur moved the Bombay High Court.
Yes Bank, meanwhile, reported an 18.8-per cent year-on-year growth in net profit to Rs430 crore for the fourth quarter ended 31 March 2014, on the back of higher growth in loan book and net interest income.
The private sector lender had reported a net profit of Rs362 crore in the year-ago quarter.
The bank's net interest income, or the difference between interest earned and interest expended, rose 12.8 per cent to Rs719 crore. The bank's net interest margin improved by 10 basis points sequentially to 3 per cent while remaining unchanged on an annual basis.
The bank's absolute gross and net non-performing assets also decreased by 10.7 per cent and 38.4 per cent, respectively sequentially, on an already low base.
