NEW DELHI: The RBI has cut short the tenure of Yes Bank’s CEO & MD Rana Kapoor, but allowed time till January 31, 2019. In June, Yes Bank’s shareholders had approved the reappointment of Kapoor for three years, but the central bank turned down the proposal.
All shareholder approvals are vetted by RBI. This wasn’t the first time that the banking regulator wielded power to trim the top executives’ extension.
Early this year, Axis Bank’s CEO Shikha Sharma’s reappointment too met a similar fate, as her tenure was scraped down to six months. Sharma will step down in December.
“Reserve Bank of India has vide letter dated September 17, 2018, received today, intimated that Rana Kapoor may continue as the MD & CEO till January 31, 2019, and the Board of Directors of the bank are scheduled to meet on September 25, 2018, to decide on the future course of action,” Yes Bank said in filing.
Kapoor has been the bank’s CEO since 2004 and his term ended on August 31 this year.
The latest missive clears uncertainty about Kapoor’s association with the bank, which he co-founded with Ashok Kapur, who died in the 26/11 terrorist attack in 2008.