Announcing the truce between the two promoter groups, Yes Bank on Tuesday said that the Madhu Kapur group and Rana Kapoor group have agreed to nominate one representative director each on the bank’s board and the board has send its recommendation to RBI for its approval.
Earlier on November 20, 2018, the bank had stated that efforts were being undertaken for mutual resolution and truce between Rana Kapoor Group and Madhu Kapur and family, the two co-promoter groups of the bank.
The company said that select senior board of directors of the bank had also interacted with Madhu Kapur and family, recently.
“The Madhu Kapur group and Rana Kapoor group have agreed to nominate one Representative Director each on the Bank’s Board, subject to the completion of the necessary documentation. The two new appointed Directors will be announced at the next scheduled Board meeting in April, 2019,” said Yes Bank in its filing with the stock exchanges on Tuesday.
While the announcement came after market closing hours, the shares of Yes Bank closed 2.4 per cent lower than Monday’s closing. The bank further said that the announcement of the two new appointed directors will be done at the bank’s next scheduled board meeting in April 2019.
“This is intended to ensure better coordination and support by the two promoter groups with the new MD & CEO and the board of directors of the bank,” the filing added.
Yes Bank also said that its board had recommended the name of a senior board member of the bank to the Reserve Bank of India to temporarily hold the office of the Managing Director and Chief Executive Officer as an interim special duty officer.
The senior official will hold the position as “Board Director on Interim Special Duty (MD & CEO’s responsibilities)’ from Feb 1, 2019 till such date Ravneet Gill assumes office in March, 2019,” it said.
Last week, Yes Bank had appointed former Deutsche Bank India head Ravneet Singh Gill as its Managing Director and CEO as incumbent Rana Kapoor is required to step down on January 31, 2019.
In September, the RBI had asked Kapoor to find a replacement for himself. Kapoor co-founded the bank in 2004, along with his late brother-in-law Ashok Kapur, who died in the 2008 Mumbai terror attacks, after which his wife Madhu Kapur became the co-promoter of the bank. The two co-promoters have been caught-up in a legal battle over the last five years over issues including nominating members of their choice on the board of the bank.