The Reserve Bank of India (RBI) on Friday appointed former deputy governor R Gandhi and Ananth Narayan, associate professor, S P Jain Institute of Management and Research, on the board of Yes Bank as additional directors for two years. The central bank said these appointments are effective March 26.
Narayan was earlier at Standard Chartered Bank as its regional head of financial markets for ASEAN and South Asia, while Gandhi was appointed on Yes Bank’s board in May as an additional director till May 13, 2021 and is being reappointed after its board was superseded by the RBI on March 5.
Meanwhile, Yes Bank shares fell 15 per cent to Rs 45.90 on the BSE following reports that the banking regulator has opened an emergency line of credit of around Rs 60,000 crore to Yes Bank to meet any liquidity crisis in paying back its depositors after the private lender resumed normal operations from Thursday.
The credit line is in accordance with Section 17 (4) of the RBI Act and also is a reaffirmation of Reserve Bank Governor Shaktikanta Das’ statement on Monday that the central bank was ready to provide all necessary liquidity support to Yes Bank.
As of December 2019, the bank incurred a quarterly loss of Rs 18,564.25 crore and a period to date loss of Rs 19,097.78 crore. Subsequent to this period, the bank’s deposit base has seen a further reduction to Rs 1,37,506 crore.
Earlier this week, the government reconstituted the board of Yes Bank with former Punjab National Bank non-executive chairman Sunil Mehta as the non-executive chairman, along with Mahesh Krishnamurthy and Atul Bheda as non-executive directors under the reconstruction scheme proposed by RBI.
Prashant Kumar, former chief financial officer and deputy managing director of State Bank of India and currently the Administrator of Yes Bank, has been appointed as the new managing director and chief executive officer of the private lender.
On May 5, the Reserve Bank superseded the board of directors of troubled Yes Bank for a period of 30 days “owing to serious deterioration in the financial position” of the private bank and capped the deposit withdrawals at Rs 50,000 per depositor.
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