Yes Bank CEO and MD Rana Kapoor will continue at the helm of the bank until January 31, 2019. Reserve Bank of India (RBI) has reduced his tenure even as shareholders sought a extension for three years.
In a filing to stock exchanges, the bank said, "Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Rana Kapoor may continue as the MD & CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on September 25, 2018 to decide on the future course of action."
Yes Bank has been under the regulator’s lens after it reported divergences in classification of non-performing assets (NPAs) as compared to the assessment by RBI.
On August 30, the mid-sized private lender had received RBI's approval for continuance of Kapoor as MD and CEO of the bank "till further notice".
Kapoor has been the bank's CEO since 2004 and his term ended on August 31 this year. Kapoor has been the founding CEO of Yes Bank, which was co-founded along with Ashok Kapur, who died in the 26/11 terrorist attack in 2008.
As a promoter, Kapoor and his family own 10.66 percent stake in the bank.
In June, Yes Bank's shareholders had approved the re-appointment of Kapoor as the CEO and MD for three years. Every shareholder's approval is subject to a final nod from the RBI.
Earlier this year, RBI had denied a three-year extension to Axis Bank CEO Shikha Sharma despite the board and shareholders backing her reappointment.
Over the past two years, private banks and their chiefs have witnessed increased scrutiny by the central bank on recognition and accounting of bad loans.
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