Private lender Yes Bank has announced the appointment of former IRDAI Chairman TS Vijayan to its board of directors. According to the statement released by the bank, Mr. Vijayan would serve as an independent director with immediate effect. Yes Bank is currently in the midst of a leadership change as the Reserve Bank of India (RBI) has cut short the tenure of its reigning CEO Rana Kapoor.
Over the last few weeks, three directors have resigned from the bank’s board citing various reasons. Even the bank’s Chairman, Ashok Chawla, resigned a few days back. Some directors who had quit earlier cited various differences in the practices followed by the bank. Some of the directors are also currently in the panel for finding a new CEO following the end of Rana Kapoor’s tenure on 31 January 2019.
Vijayan will also be a part of the four-member search and selection committee (S&SC) that was created by Yes Bank to find a successor to Rana Kapoor. The bank noted that the committee has made a significant progress in finding the next CEO. It has also sought larger engagement from Vijayan during the final stage of the selection and the continuation of the committee.
In September, RBI limited the term of CEO and MD Rana Kapoor due to various internal issues witnessed in the bank. Kapoor was reappointed as CEO only in September 2018 following the approval of the bank’s shareholders. However, the approval was subject to approval from the RBI. Since RBI has limited the term of Kapoor, the bank is now looking for a replacement.
Yes Bank is one of the top private lenders in the country, and it has won numerous awards in the banking industry. Rana Kapoor, who owns 4.34% stake in the bank (as of June 30, 2018), has been functioning as its CEO since 2004.
Source: Economic Times, Livemint