Surabhi

The board of directors of private sector lender YES Bank will meet on Tuesday to appoint a successor to its Managing Director and CEO, Rana Kapoor.

“The bank and its MD and CEO will be fully guided by its board of directors, the Reserve Bank of India and other relevant stakeholders. The bank’s management remains committed to protect the interests of all of its stakeholders,” YES Bank said in a statement on Monday, adding that it has demonstrated a track record of consistent delivery of business and financial outcomes over the last 14 years.

“The bank has remained in profit and this is just a phase of transition,” said a person familiar with the development.

The bank is likely to set up a Search and Selection Committee, which will recommend candidates for appointing the next MD and CEO. The candidate will have to be approved by the Reserve Bank of India.

The RBI said last week that the term of Kapoor would end on January 31, 2019, and the lender’s board is meeting to discuss the course of action.

Indications are that internal candidates such as Rajat Monga, Senior Group President (financial markets) and Pralay Mondal, business head of retail and business banking, are strong contenders. With just four months to appoint a successor to Kapoor, an internal candidate, who is familiar with the workings at the bank, may be a good fit for the post.

Among the bank’s promoter and promoter groups, Kapoor has a 4.34 per cent stake, while Madhu Kapur, wife of Ashok Kapur, the co-founder of the bank, has 7.62 per cent equity. YES Capital India Pvt Ltd has 3.28 per cent equity, Morgan Credits Private Ltd has another 3.05 stake, and Magsmags Finvest Pvt Ltd holds 1.70 per cent stake in the bank.

The YES Bank scrip fell 0.35 per cent on Monday, and closed at ₹226.25 apiece on the BSE.

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