The board of Yes Bank has formed a search and selection committee for finding a successor to its managing director and chief executive officer Rana Kapoor.
Simultaneously, the bank has decided to request the Reserve Bank of India (RBI) to extend Mr. Kapoor’s term till September 2019.
The RBI had declined to extend his term beyond January 31.
The search committee to find Mr. Kapoor’s successor will comprise three board members part of the nomination and remuneration committee and two external experts.
“It was decided that RBI be requested for an extension up to minimum April 30, 2019, for finalisation of audited financial statements for fiscal year ending 2019; thereafter subject to RBI approval, up to September 30, 2019, in order for the statutory AGM process to be completed,” the bank said in a statement.
The bank said this period would be crucial to identify and enable a new incumbent to get fully conversant with the bank and its working.
Mr. Kapoor’s present term ended on August 31 and was later extended by the RBI till January 31, 2019. The board of Yes Bank had requested RBI for a three-year extension. Mr. Kapoor has been the MD & CEO of Yes Bank since its inception in 2004.
ED appointments
The bank has also decided to appoint Rajat Monga and Pralay Mondal, senior group presidents, as executive directors of the bank, subject to RBI approval. The bank said the decision to elevate Mr. Mondal and Mr. Monga was taken ‘in order to ensure a long-term succession plan within Yes Bank, and given the demonstrated track record of the two senior leaders.’ “The Bank would make appropriate recommendations to RBI regarding the appointments [of Mr. Mondal and Mr. Monga].”
Interestingly, the two top executives were proposed to be elevated to the executive director’s post in 2013, as per the recommendation of the human resources department.
However, the Bombay HC had ruled that the recommendation for the whole-time director’s appointment should come from both the promoters, that is, Rana Kapoor and Madhu Kapur, who are locked in a dispute.
