The battle between the two promoters of Yes Bank the Kapur family and Rana Kapoor,the current managing director continued at the banks Annual General Meeting on Saturday with the Kapur family and a section of shareholders opposing the resolution to elect three directors proposed by the present management led by Rana Kapoor.
The resolution recommending the election of three directors was put to vote as a section of shareholder demanded polling at the AGM on Saturday. The result will be declared on Monday. All other resolutions were passed by the shareholders, said a shareholder who attended the meeting. The three directors proposed by the bank management led by Rana Kapoor are: Diwan Arun Nanda,Ravish Chopra and M R Srinivasan.
The Bombay High Court had on Friday refused to grant a stay sought by Madhu Kapur,the widow of Yes Bank founder late Ashok Kapur. The Kapur family Madhu Kapur and two children of Ashok Kapur had said in the court that they should have been consulted before appointing anyone to the post of director in the bank.
According to sources,the resolution for the election of directors is likely to be passed as the Kapur family doesnt have adequate voting support to block the resolution. While the Kapur family holds around 12 per cent in the bank,Rana Kapoor has over 13 per cent stake. However,Kapoor enjoys the support of institutions and mutual funds.
The main grievance of the Kapur family is that they have not been consulted by Rana Kapoor,who is the brother-in-law of Ashok Kapur,who was among those killed in the 26/11 terrorist attack in Mumbai. The bank was jointly promoted by Ashok Kapur and Rana Kapoor. After Kapurs death,Rana Kapoor has been managing the affairs of the bank while the Kapur family failed to get any board representation. Madhu Kapur and Rana Kapoors wife are sisters.
Madhu Kapur had earlier written to the bank management for her induction into the board. However,the present management apparently turned it down citing the RBIs fit and proper criteria.
Senior counsel Birendra Saraf,appearing for the Kapur family,argued the three proposed directors were recommended by Rana Kapoor without concurrence of the present plaintiffs. The outcome of the voting at the AGM will be subject to the final verdict of the High Court.
Set up in 2004,Yes Bank is the fourth largest private bank in the country. The bank reported a 33 per cent growth in net profit at Rs 1,300 crore during the year ended March 2013. The bank had a deposit base of Rs 66,955 crore as on March 31,2013.
* Ashok Kapur and Rana Kapoor set up Yes Bank in 2004
* Wives of Kapur and Kapoor are sisters
* Ashok Kapur was killed in 26/11 attacks in Mumbai
* Rana Kapoor manages the bank as MD
* Kapurs do not get board representation