YES Bank gets RBI nod to reappoint Rana Kapoor as MD & CEO
31 Aug 2018
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The Reserve Bank of India (RBI) has allowed CEO Rana Kapoor to continue in his present position as managing director and CEO of Yes Bank ‘until further notice.”
The board of directors of the bank had recommended a three-year term for Rana Kapoor. The RBI announcement came a day before Kapoor's current 3-year term was about to end.
“We wish to inform you that the bank has received RBI’s approval that Rana Kapoor may continue as Managing Director and CEO of Yes Bank till further notice from the RBI. You are requested to take note of the same,” the bank told stock exchanges in a regulatory filing late on Thursday.
The market, however, did not approve of it as the YES Bank stock declined nearly 7 per cent in the morning trade today.
In June, the board of the country's fourth largest private sector lender decided to reappoint Kapoor who is also founder of the Mumbai-based bank as managing director and CEO for a period of three years.
The bank's shareholders had also approved the proposal to re-appoint Kapoor from 1 September 2018, for three years. The RBI is understood to have written to the board of Yes Bank asking for the rationale and terms of Kapoor's re-appointment.
The central bank’s approval till further notice is likely to cause uncertainty amongst investors.
On Friday, Yes Bank scrip was trading 3.43 per cent lower at Rs 349.50 apiece on the Bombay Stock Exchange. The stock fell as much as 6.6 per cent to hit a low of Rs338 on the BSE.
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