MUMBAI: Yes Bank hopes to hire its CEO & MD Rana Kapoor’s successor by January, as per reports.
The decision comes days after the Board’s request to RBI to allow Kapoor to continue till April or September 2019.
Regardless of whether RBI agrees or not, the private lender will shortlist CEO candidates by this month and will seek regulatory approval by November or December 2018. Should Kapoor get RBI blessings for another quarter or more, it will help in smooth transition, sources explained.
“The bank is looking at January timeline only (for CEO replacement),” said a senior official, who said the bank will hire an executive professional search firm by next week.
“The meeting and shortlisting of candidates should happen within a month. The bank will then seek regulator nod by November or December,” he said, adding that Kapoor’s extension, if it comes by, will make “handing over comfortable.”Last week, in an unexpected gesture, Yes Bank’s Board requested RBI to grant Kapoor more time, besides setting up a search and selection committee comprising three members from the existing nomination and remuneration committee and two external experts, to identify Kapoor’s successor.
In a filing with bourses, Yes Bank on Monday said it will finalise the two external members by October 7. The search and selection committee will be assisted by a global leadership advisory firm and evaluate both internal and external candidates, the bank said, adding that RBI timelines will be adhered to.
Meanwhile, in the same filing, Yes Bank said bad loans reduced to 1.35 per cent as on September 2018, against 1.82 per cent a year before, and that its asset quality outlook was stable.
“Over the past few days, some unfounded speculations regarding the bank’s asset quality have been brought to its notice. In this context, the management clarifies that the asset quality continues to be stable,” the bank said. The liquidity position is comfortable with a coverage ratio of 101 per cent as on September 30.The bank also sought RBI approval to appoint two insiders — Rajat Monga and Pralay Mondal — as executive directors.
Following RBI denial for extension of Kapoor’s term, Yes Bank’s scrip went down by over 50 per cent in just six trading sessions. But on Monday, it closed at Rs 201, higher by 9.7 per cent than its previous close on BSE.