The board has also recommended that Kapoor not be paid any bonuses for FY17 and FY18 either
The mid-sized private bank's decision comes after negative observations made by the Reserve Bank of India (RBI), the news daily reported.
The board has also recommended that Kapoor not be paid any bonuses for FY17 and FY18 either, and didn't propose any bonus for him for FY19, according to documents reviewed by the publication.
Moneycontrol is yet to review the documents by itself.
The recommendations made by the bank's board have been sent to the RBI for its go ahead, the newspaper reported.
In September, the banking regulator had asked Yes Bank to end Kapoor's term as MD and CEO on January 31, 2019, despite the lender having requested for an extension of his term by three years.
The tenure was cut short after RBI pointed out divergences worth Rs 10,531 crore in the bank's books for two consecutive fiscal years, along with likely corporate governance issues in its lending process.
New CEO likely by December 15
According to a Business Standard report, Yes Bank has picked December 15 as a cut-off date to find a new MD and CEO to replace the outgoing Kapoor.
The lender has hired US-based advisory firm Korn Ferry to assist in the selection process. A committee with three internal and two external members has been set up to search for suitable candidates.
Many candidates from outside the organisation are being considered for the post. One of the likely contenders on the inside is Rajat Monga, Senior Group President at Yes Bank.
Also, it is not yet clear if Kapoor will be allowed to remain on the bank's board after his exit. The board is yet to decide on it, and in order to do so, the legal battle between Kapoor and other promoter Madhu Kapur would need to be sorted out.Kapoor had started Yes Bank along with late brother-in-law Ashok Kapur and Rabo Bank in 2004. After the death of Ashok Kapur in 2008, his wife Madhu Kapur became the second largest promoter of the bank and currently holds 9.27 percent stake. Rana Kapoor owns 10.66 percent.