MUMBAI: The Board of Yes Bank, which will huddle Tuesday, has to crack a peculiar problem. Should it pick a CEO candidate on its own, or let the Kapoor-Kapur promoter family lord over the key decision, citing its unique Articles of Association? Regardless of the situation, there are three options. One, pick an insider.
Names doing the rounds include Rajat Monga, Senior Group President, but experts say RBI could turn it down as Monga was part of the senior leadership under whose watch the murky Rs 10,600 crore NPA was under-reported.
Two, poach from peer lenders, but the bank has to act fast as time is definitely not on its side, with RBI allowing CEO & MD Rana Kapoor to continue only till January. Three, bring an interim CEO, who could be a current Board member as well, to fill the leadership void and rope in an executive search team to go hunting.
In the meantime, the Board will likely consult legal eagles and RBI to get clarity on the mandatory promoter approval for appointments. Markets, which thrashed the bank’s scrip by about 30 per cent last Friday, will closely watch for cues indicating the future course of action.