NEW DELHI: Yes Bank’s shareholders on Tuesday gave their nod to grant current managing director and chief executive officer Rana Kapoor another three year term, even as they approved several resolutions including those for raising required capital through various options — including issuing shares and borrowing.
The borrowing limit of the bank has now been raised to Rs 1,10,000 crore, while shareholders approved a dividend of 135 per cent.Thirteen resolutions were approved at the 14th Annual General Meeting (AGM) held on Tuesday.
“The shareholders supported the resolutions for re-appointment of Rana Kapoor as MD & CEO of the Bank for a further period of 3 years, effective September 1, 2018, with an overwhelming majority. The re-appointment is subject to final approval by the Reserve Bank of India (RBI),” the bank stated.
Apart from reinstating Kapoor, shareholders also cleared the appointment of Subhash Chander Kalia as Non-Executive Non-Independent Director, former Nasscom president Rentala Chandrashekhar and Dr Pratima Sheorey as Independent Directors for a period of 5 years, and Ajai Kumar as Non-Executive Non-Independent Director.
As for financial resolutions, the shareholders approved raising capital aggregating up to $1 billion by way of issue of shares, and raising or borrowing Rs 30,000 crore by issuing debt securities. “The shareholders also approved through special resolutions to raise the total borrowing limit of the Bank to Rs 1,10,000 crore, ” the bank said.
Speaking on the occasion, Ashok Chawla, non-executive chairman, Yes Bank said, that the bank is “fully equipped to capitalize on innovations in technology through strategic partnerships with established organizations as well as agile fintech players, thereby enhancing customer service & developing robust future ready processes for the entire Indian Banking industry”.
Shareholders also approved dividend of Rs 2.7 per equity share of Rs 2 each (or 135 per cent) as recommended by the Board of Directors. They have also approved the new Employee Stock Option Scheme, namely YBL ESOS – 2018 for employees of Yes Bank and its subsidiaries.