Yes Bank said it was looking into the fit and proper status of Uttam Prakash Agarwal, its independent director who resigned citing governance issues, as directed by the Reserve Bank of India.
Mr. Agarwal was heading the bank’s audit committee.
Yes Bank said the board was scheduled to discuss the fit and proper status of Mr. Agarwal at Friday’s board meeting but he resigned before the meeting started.
“In this respect [Mr. Agarwal’s fit and proper status], the bank had obtained legal opinions from eminent jurists. These opinions were to be considered by the nomination and remuneration committee of the board of the bank in their meetings scheduled for January 10, 2020. However, prior to the commencement of the proceedings of these meetings, the bank received the resignation of Mr. Agarwal,” the lender said in a filing to the exchanges.
Mr. Agarwal was appointed as an additional director (independent) on November 14, 2018 for five years. A chartered accountant, he chaired the audit committee of the board.
Citax offer
Separately, the bank has also informed the exchanges that the board, at its meeting on Friday, decided not to proceed with the $1.2 billion investment offer of Erwin Singh Braich/SPGP Holdings in the bank. The offer was made in November 2019.
The offer of $500 million investment from Citax Holdings and Citax Investment Group, scheduled to be discussed at the board meeting, could not be taken up and would be taken up later.
The board also approved raising funds of up to ₹10,000 crore, through debt and equity, the bank said.
