The Yes Bank’s board meeting on Tuesday came to a decision that it will request Reserve Bank of India (RBI) to extend Rana Kapoor’s term till 30th September 2019.
Reserve Bank of India earlier reject the plea to approve Rana Kapur’s tenure till September 2021 and has limited it till January 2019.
As per a statement of YES BANK quoted by Financial Express “It was decided that the Reserve Bank of India be requested for an extension up to minimum April 30, 2019, for finalization 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.”
Highlights of YES Bank’s Board Meeting :
- The bank shall ask Reserve Bank of India to extend the Rana Kapoor’s tenure.
- The first requested extension shall be till 30th April 2019 to settle the financial books of FY-19. Thereafter, extending the period till 30 Sept ’19 for finishing the annual meeting process.
- The board will also set up a committee to hunt the new successor of Kapoor.
- Rajat Monga and Pralay Mondal will be promoted to executive directors after RBI’s confirmation.
The board meeting did not bring up the topic of Kapoor being a nominee director after his term ends.
As reported by Live Mint, The board is curious to know the reason behind RBI’s unpredictable decision to cut down Rana Kapoor’s term. Earlier, the chief general manager of RBI has approved to extend the term till 2021 and subject to CGM’s approval executive director of RBI also did not reject it, said a person aware of about the situation.
Recent media coverings suggest that Yes bank board is inclined towards the leadership of Rana Kapoor as he has been the founding CEO since the inception of the Bank. Moreover, the board believes that the bank has attained sustainable growth under his tenure.
The declining shares of YES Bank witnessed a rise ahead of board meeting buzz in the Tuesday Trade.