No extension for Rana Kapoor, RBI asks Yes Bank to appoint new CEO by Feb 1

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26 Aug, 2025 12:21

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The Reserve Bank of India has turned down Yes Bank's request to extend its chief executive Rana Kapoor's term up to April 2019. The regulator has asked the bank to appoint a new CEO by February 1, 2019.

"The Reserve Bank of India has reaffirmed that a successor to Rana Kapoor, MD & CEO, Yes Bank should be appointed by February 1, 2019," Yes Bank said in an exchange filing.

After the September 25 board meeting, the bank said it would seek an extension for Kapoor till April 30 for finalisation of financial statements for the year ending March 2018. And thereafter, a further extension till September 30 for completing the annual general meeting process.

Kapoor, who has been the founding CEO of the mid-sized private bank since 2004, was asked to step down from January 31, 2019, by the RBI. This was against the board and shareholders' proposal to extend his term by three years after his term ended on August 31 this year.

After the RBI's reaffirmed directive, Yes Bank said its 'Search & Selection Committee' is targeting to complete this recruitment process latest by mid-December 2018.

As communicated by the Bank on September 24, 2018, the MD & CEO will be fully guided by its Board of Directors, the RBI and other relevant stakeholders, the bank said in the exchange filing.

On October 11, Yes Bank announced the appointment of global firm Korn Ferry mandated by the 'Search & Selection Committee' to assist in evaluating both internal and external candidates and make suitable recommendations to the Board of Directors within stipulated timelines for RBI' s final approval.

As part of the succession plan, the board has also decided to promote Rajat Monga and Pralay Mondal as executive directors, subject to approval from RBI. However, the RBI is yet to communicate its decision on the same.

Both Monga and Mondal are considered to be the internal front-runners to succeed Kapoor.