The boardroom tussle at Yes Bank is once again in the news with independent director Uttam Prakash Agarwal putting in his papers, citing failure in corporate governance and compliance.
Agrawal told Moneycontrol that that he was unhappy the way the private bank was dealing with capital raising. He also expressed his reservations on appointment of employees under the new management.
He was appointed to the post on November 14, 2018, and his tenure was set to end in November 2023.
Agarwal tendered his resignation on January 10, the day when board meet was scheduled to take decision on the bank’s capital raising plans.
Later in the day, Yes Bank informed exchanges that the board was also going to discuss Agarwal’s role after reviewing his ‘fit & proper’ status under directions from the banking regulator.
“However, prior to the commencement of the proceedings of these meetings, the Bank received the resignation of Mr. Agarwal,” Yes Bank said.
The private lender is under immense pressure to raise fresh equity from new investors to support its capital base and support credit growth.
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While the bank’s Managing Director Ravneet Gill had assured the bank's stakeholders that the lender has offers worth $3 billion on the table, the bank’s board is yet to take a firm decision on the matter.
In the meeting held on January 10, the board decided to consider $500 million offer from Citax Holdings and Citax Investment Group, while it rejected the $1.2 billion offer from Canadian industrialist Erwin Singh Braich.
The board approved fund raising of Rs 10,000 crore via mix of debt and equity instruments.
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