Yes Bank is caught in an uncanny situation. The Mumbai-based private lender doesn’t have a chairman. Soon, the post of CEO & MD too will fall vacant should the bank and banking regulator RBI need more time — the former in choosing its chief and the latter in clearing the appointment.
The bank also has to fill up vacant board seats, having witnessed three exits — chairman Ashok Chawla, and board members Vasant Gujarathi and Rentala Chandrashekhar — in just a fortnight over governance issues. Sensing the top management vacuum, the bank is in a troubleshooting mode and has been beefing up its Board.
Recently, it roped in Uttam Prakash Agarwal and T S Vijayan taking board strength to eight. It has also advanced its board meeting to December 13, and is expected to discuss and appoint a chairman. Speculation has it that the bank’s co-founder, and outgoing CEO & MD Rana Kapoor may offer himself for the post, but it remains to be seen if terms with the other sparring promoter group — led by Madhu Kapoor — will be ironed out.
Just a few weeks ago, the bank said in an investor presentation that the search and selection committee formed on September 25, comprising two external experts and three internal members, will meet on December 12 to shortlist CEO candidates and their decision will presented to the board on December 13. Personnel issue aside, the bank may find itself in the RBI’s crosshairs.
Per reports, the regulator is looking into the bank’s exposure to troubled IL&FS and other entities, while other reports pointed out Kapoor’s investment vehicles making transactions that could be questioned by investors and regulators. As it is, rating agencies including Moody’s, Icra and Care have downgraded ratings, raising concerns over corporate governance.
Current board members
● Rana Kapoor: MD & CEO
● Brahm Dutt: Independent Director
● Lt. General (Dr.) Mukesh Sabharwal (Retd.): Independent Director
● Ajai Kumar: Non-Executive, Non-Independent Director
● Subhash Chander Kalia: Non-Executive, Non-Independent Director
● Dr. Pratima Sheorey: Independent Director
● Uttam Prakash Agarwal: Additional Director (Independent)
● T S Vijayan: Additional Director (Independent)