Yes Bank board to recommend names for new chairman to RBI on December 13

Yes Bank on Wednesday said its board on December 13 will recommend names for new chairman to be approved by the RBI as well as consider appointment of independent directors.

The private sector lender, which is grappling with governance as well as NPA issues, has seen resignations of three independent directors, including Chairman Ashok Chawla.

In a regulatory filing, the bank said its Nomination & Renumeration Committee (N&RC) of the board and the board of directors are scheduled to meet on December 13.

During the meetings, they would consider proposals for appointment of independent directors and also recommend name(s) of the new chairman for approval of the RBI, it added.

Yes Bank also reiterated that it is on track to find a successor to MD and CEO Rana Kapoor and said the resignations of the three board members will have no impact on the succession plan.

Chairman Ashok Chawla, Vasant Gujarathi and Rentala Chandrashekhar have quit the bank on various reasons including on governance issues.

In the meantime, the bank inducted Uttam Prakash Agarwal in its board taking the current strength to seven members.

Yes Bank's Search & Selection Committee (SSC) and the N&RC are scheduled to meet on December 12 to discuss the final shortlist for new MD&CEO appointment.

In September, the RBI decided against any extension for Rana Kapoor to continue as MD and CEO beyond January 31, 2019 and asked the bank to find a replacement.

According to sources, the RBI did not want him to continue on the position due to under-reporting of bad loans as well as laxity in corporate governance.

Meanwhile, two promoter shareholders of Yes Bank -- Morgan Credits (MCPL) and Yes Capital (YCPL) -- Wednesday said they have raised some funds to meet their growth objectives and have no commercial dealings with the private sector lender.

"To address their growth objectives, MCPL and YCPL have raised some debt which is well within their eligibility limits. MCPL and YCPL have at all times complied with all covenants of such debt including servicing obligations and will continue to do so," the two companies said in a joint statement.

The statement comes in the wake of a media report which said Yes Bank chief Rana Kapoor's investment firms borrowed money from mutual funds and invested it as equity in a finance company.

Morgan Credits Pvt Ltd (MCPL) and Yes Capital (I) Pvt Ltd (YCPL) are holding companies owned 100 per cent by Radha K Khanna, Raakhe K Tandon and Roshini Kapoor (Rana Kapoor's daughters) Radha, Raakhe and Roshini are qualified, independent woman entrepreneurs and have put in place a professional management team under the brand 'The Three Sisters: Institutional Office (TTS:IO)' through which greenfield, start-up ventures have been established, said the statement.