In a spate of resignations in November, Ashok Chawla stepped down as board Chairman, and independent directors Vasant Gujarathi and R Chandrashekhar too resigned from Yes Bank's board
After the resignations of three board members, Yes Bank has appointed former Life Insurance Corporation of India (LIC) Chairman TS Vijayan as an additional independent director for five years.
“We would like to inform that the Board of Directors of the bank on December 3 have approved the appointment of TS Vijayan as Additional Director (Independent) with immediate effect,” the bank said in a stock exchange filing.
The appointment is subject to shareholder approval at its next general meeting.
The approval comes after it informed investors on November 28 that the bank will consider appointment of a new chairman and fill two independent director positions at its upcoming board meeting on December 13.
In a spate of resignations in November, Ashok Chawla stepped down as board Chairman, and independent directors Vasant Gujarathi and R Chandrashekhar too resigned from Yes Bank's board.
The mid-sized private sector bank is set to meet to discuss the appointment of a successor to the outgoing CEO and Managing Director Rana Kapoor, who will step down on January 31, 2019.
Vijayan, also a key external member of the search and selection committee (S&SC) set-up to identify a suitable successor to Kapoor, was also the former Chairman of Insurance Regulatory & Development Authority of India (IRDAI) specialising in administration, IT, HR and marketing.
"Given that the S&SC has made significant progress and is in advanced stages, the nomination and remuneration committee (NRC) and the board has decided to seek Vijayan's larger engagement and involvement, now as an Additional Board Director (Independent) with continuation on the four member S&SC," the bank said.
Earlier, Vijayan was under the scanner of the Central Bureau of Investigation (CBI) for about two years in the LIC Housing Finance scam. However, he was exonerated after the agency in July 2011 didn’t find any wrongdoing. After his five-year term as Chairman of LIC expired, he was denied an extension on the ground an internal panel of the Finance Ministry had unearthed procedural lapses in investments by LIC.
Later, the case was shifted to the Central Vigilance Commission, which recommended a CBI probe into the allegations. However, no evidence was found against him.Yes Bank’s two promoters, currently involved in a family dispute, are in favour of overhauling the board to address past issues and settle nomination rights for board members.