NEW DELHI: The Reserve Bank has curtailed the term of Yes Bank's founding CEO Rana Kapoor and asked the private sector lender to look for his substitute by January 2019.
Kapoor, who has been managing director and CEO for the reason that bank's inception in 2004, had sought a three-year extension till August 31, 2021. However, the field regulator didn't comply with the request and authorised him to continue most effective till January 2019.
"Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD & CEO till 31 January 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," the bank mentioned in a commentary.
In June this year, Yes Bank's shareholders had approved the re-appointment of Kapoor for 3 years, topic to ultimate approval from the Reserve Bank of India (RBI).
His provide term ended on August 31. However, the RBI had allowed him to continue till additional notice.
RBI approved the reappointment of Rana Kapoor as MD and CEO of Yes Bank on August 30, 2018 however didn't specify the duration.
Earlier this year, RBI denied a three-year extension to Axis Bank CEO Shikha Sharma in spite of the board endorsing her reappointment.
Kapoor was once a part of the founding workforce of Yes Bank, along with Ashok Kapur who died in 2008. As a promoter, Kapoor and his family own 10.66 in line with cent stake in the bank.
The banking sector has observed greater regulatory scrutiny over the past two years because the RBI has tried to push for appropriate reputation of dangerous loans.
The asset high quality assessment initiated in December 2015 has led to banks recognising an extra Rs 6 lakh crore as dangerous loans.
Banks had been asked to divulge 'divergences' in dangerous mortgage reporting. As a consequence, the RBI judged gross NPAs at Rs eight,373.eight crore for Yes Bank for 2016-17 towards the declared gross NPAs at Rs 2,018 crore. Thus, there was once a divergence of Rs 6,355 crore or thrice the reported amount.
Shares of the bank closed at Rs 318.50, down 1.44 in line with cent in line with unit on the BSE.
Kapoor, who has been managing director and CEO for the reason that bank's inception in 2004, had sought a three-year extension till August 31, 2021. However, the field regulator didn't comply with the request and authorised him to continue most effective till January 2019.
"Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD & CEO till 31 January 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," the bank mentioned in a commentary.
In June this year, Yes Bank's shareholders had approved the re-appointment of Kapoor for 3 years, topic to ultimate approval from the Reserve Bank of India (RBI).
His provide term ended on August 31. However, the RBI had allowed him to continue till additional notice.
RBI approved the reappointment of Rana Kapoor as MD and CEO of Yes Bank on August 30, 2018 however didn't specify the duration.
Earlier this year, RBI denied a three-year extension to Axis Bank CEO Shikha Sharma in spite of the board endorsing her reappointment.
Kapoor was once a part of the founding workforce of Yes Bank, along with Ashok Kapur who died in 2008. As a promoter, Kapoor and his family own 10.66 in line with cent stake in the bank.
The banking sector has observed greater regulatory scrutiny over the past two years because the RBI has tried to push for appropriate reputation of dangerous loans.
The asset high quality assessment initiated in December 2015 has led to banks recognising an extra Rs 6 lakh crore as dangerous loans.
Banks had been asked to divulge 'divergences' in dangerous mortgage reporting. As a consequence, the RBI judged gross NPAs at Rs eight,373.eight crore for Yes Bank for 2016-17 towards the declared gross NPAs at Rs 2,018 crore. Thus, there was once a divergence of Rs 6,355 crore or thrice the reported amount.
Shares of the bank closed at Rs 318.50, down 1.44 in line with cent in line with unit on the BSE.
RBI trims Rana Kapoor's term as Yes Bank CEO
![RBI trims Rana Kapoor's term as Yes Bank CEO]()
Reviewed by Kailash
on
September 20, 2018
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