Ashok Chawla steps down as Yes Bank Chairman with immediate effect

Ashok Chawla | The non-executive chairman of Yes Bank stepped down on November 14 amidst reports that he felt the private bank needed someone who could devote more time and attention while CEO Rana Kapoor is on his way out. Chawla, who is also the chairperson of the National Stock Exchange and a board member of Jet Airways, was at the helm of the fourth largest private sector bank in India since 2016. Due to the multiple positions he holds, Chawla previously faced questions over possible conflict of interests. In July, CBI named him in a charge sheet in the Aircel-Maxis corruption case.

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Moneycontrol News
Ashok Chawla has resigned as the Non-Executive (Independent) Chairman of Yes Bank on November 14 with immediate effect, the bank said in a filing with the exchanges.

His exit could be the outcome of the likely conflict of interest over his multiple roles as the National Stock Exchange (NSE) Chairman as well as a board member of various other companies such as Yes Bank and Jet Airways.

Moneycontrol had earlier reported that the government received representations from shareholders of companies as well as independent individuals raising questions on Chawla’s multiple roles and leading to situations of conflict of interest.

Sources, however, also told Moneycontrol the existing rules allow stock exchange board members to represent boards of other companies if relevant disclosures are made.

Yes Bank audit committee Chairman, Vasant Gujarati, also resigned with immediate effect due to personal commitments, according to a notification to the stock exchanges. Uttam Prakash Agarwal has been appointed in his place as the Additional Director (Independent). Agarwal has served as an independent director on the boards of various companies including IRDAI, NSEL and ICAI Research Foundation amongst others.

Chawla has been serving as the Chairman of NSE, a quasi-regulator under the SEBI Act, since 2016. He was also the Chairman of Yes Bank, overseeing the leadership transition in the bank.