Even as the controversy over the nomination of the daughter of one of its founders (Ashok Kapur’s daughter Shagun Gogia) on the board continues,private lender Yes Bank today elevated three of its top executives as wholetime directors.
The bank’s board,which met yesterday as per an order of the Bombay High Court to consider the nomination of Shagun Kapur Gogia,has decided to appoint the three executives as wholetime directors,it said in a statement.
Accordingly,chief financial officer Rajat Monga,corporate finance head Sanjay Palve and retail and business banking head Pralay Mondal are appointed as wholetime directors,subject to RBI and shareholder approvals,the statement said.
It said these executives have been promoted to build and strengthen the “institutional and professional character” of the bank.
On Gogia’s application to be appointed on the board,the city-headquartered bank had yesterday issued a statement saying the decision of the board would be informed to the Bombay High Court by July 1 as the matter is sub judice.
Gogia,who is the daughter of the late Ashok Kapur,who was killed in the 26/11 terror attack on the city,had sought a board seat in 2009 but was rejected by the board fearing she may not meet the “fit and proper” criteria set by RBI.
Her mother Madhu Kapur,who holds a tad over 12 per cent stake in the youngest private lender,had on June 6,two days before the AGM,moved the Bombay High Court against the appointment of Diwan Arun Nanda,Ravish Chopra and MR Srinivasan on the bank board and sought a stay on the June 8 AGM.
The court dismissed the plea of Madhu,whose sister is married to Rana Kapoor,to stay the AGM,but had asked the bank board to advance its July 22 meeting to June 27 to consider Gogia’s application for a board seat. The next date of hearing is July 1.
Rana Kapoor and Kapur were the founders of the bank and now Rana Kapoor is the managing director and chief executive.