Money & Banking

RBI deadline to appoint new CEO will be met: YES Bank

Surabhi Mumbai | Updated on November 17, 2018 Published on November 16, 2018

The private sector lender has been passing through a leadership transition process, and its MD and CEO, Rana Kapoor, has been asked by the RBI to step down on January 31.

Shares drop 7%; resignation of OP Bhatt will not impact the appointment process, says lender

 

 

Private sector lender YES Bank is likely to suggest to the RBI the names of candidates for the post of Managing Director and CEO by the second or third week of December. The resignation of former State Bank of India Chairman OP Bhatt from its search and selection panel will not impact the appointment process, according to sources.

“YES Bank will have a new MD and CEO well within the timeframe given by the RBI and the deadline of February 1, 2019, will be met. The internal target of December 15 may or may not be met by a few days but that is immaterial,” said a person familiar with the development.

Bhatt, who was appointed on October 5 as an external expert to YES Bank’s search and selection committee, resigned from the role on Thursday.

“OP Bhatt has tendered his resignation from his duties as an external expert of the search and selection committee with immediate effect citing that there may be a potential conflict of interest,” YES Bank had said.

Sources said that Bhatt did not face any conflict of interest at the bank. Significantly, he is also an Independent Non-Executive Director on the board of Standard Chartered Bank where he joined in 2013. “In all the prior meetings of the search and selection committee he attended, there had been no discussions about any conflict of interest,” they added.

In response to an email query from BusinessLine, Standard Chartered Bank, said: “We are aware OP Bhatt stepped down from his role as an external advisor on YES Bank’s CEO selection panel. We can confirm this was a decision taken by Bhatt, and that he informed Standard Chartered of his decision.”

Meanwhile, YES Bank shares fell for a second consecutive day on Friday, plunging by as much as 8.5 per cent in intra-day trade. After some recovery, it closed at ₹191.30 apiece on the BSE, down 7.14 per cent from Thursday’s closing price.

The private sector lender has been passing through a leadership transition process, and its MD and CEO, Rana Kapoor, has been asked by the RBI to step down on January 31. Meanwhile, its Non-Executive Chairman Ashok Chawla also tendered his resignation on Wednesday.

Published on November 16, 2018
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