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Will the promoters and co-founders of YES Bank come together to create a smooth transition for the next Managing Director and CEO of the private sector bank? This could be a distinct possibility, given the two rounds of meetings between the groups.
Indications are also that Rana Kapoor could step down from the board of directors of the bank after his term as Managing Director and CEO comes to an end on January 31.
“This is a decision that only Kapoor will take. As of now, he and the bank are working on getting his successor in place. But given his active role and his mentality to be a builder and founder, it is unlikely he would want to carry on simply as a director on the board,” said a source. However, Kapoor could take a decision on the issue only later next year. Sources said the RBI, while cutting down Kapoor’s term till January 31, 2019, has not communicated on the issue of his seat on the bank’s board.
Meanwhile, sources close to the development say that Kapoor is trying to work out a resolution proposal with his sister-in-law and co-promoter, Madhu Kapur, which will help create information parity between the two groups.
“This is the first such effort to bring a resolution between the two promoter groups since problems arose after the demise of Ashok Kapur, husband of Madhu Kapur, who had co-founded the bank with Kapoor,” said a person familiar with the development.
The idea is to create a single level of information for both promoters through a planned mechanism. This will ensure that both promoters get regular updates from the new MD and CEO about the bank, said the source, adding that they do not want to interfere in the independent functioning of the lender.
Kapoor is understood to have met Madhu and her daughter Shagun Gogia recently and then later with Gogia’s brother, Gaurav Kapur.
“This was a follow-up meeting with a more updated version of the resolution proposal that was originally floated,” said the source, adding that both groups are looking into the plan and could meet again towards the month-end. YES Bank declined to reply to an e-mail questionnaire from BusinessLine on the issue.
On Friday, the YES Bank scrip fell 6.06 per cent to close at ₹ 217.70 apiece on the BSE. The private sector lender will be announcing its second quarter results on October 25.
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