NEW DELHI: Yes Bank’s Rana Kapoor will have to step down as MD and CEO on January 31 next year, with the Reserve Bank of India refusing to grant him an extension. Yes Bank shares closed the day down 6.85 per cent on the stock exchanges.
The RBI’s decision to deny the bank’s request for a three-month extension for Kapoor was announced through a regulatory filing on Wednesday evening, which said that “the RBI has reaffirmed that a successor... should be appointed by February 1, 2019”.
The RBI’s diktat had come after Yes Bank had moved to reappoint Kapoor for another three-year term after the central bank found a divergence in reported NPAs for 2016-17 to the tune of more than Rs 6,300 crore.
Following the regulator’s communication on Kapoor, the bank had written back requesting that he be allowed to stay on till April 2019 to finalise financial results for the year and till September 2019 to complete annual general meeting formalities. This request has now been rejected.