RBI Rejects Yes Bank Plea To Extend Rana Kapoor's Tenure As MD For Another 3 Years

News World India | 0
| September 20 , 2018 , 13:57 IST

The Reserve Bank of India has asked Yes Bank on Wednesday to end Rana Kapoor's tenure as MD and CEO on January 31, 2019, turning the idea of extending Kapoor's tenure for another three years demanded by the bank.

In a press release, Yes Bank said, “The Reserve Bank of India has vide letter dated 17 September 2018 received on Wednesday, intimated that Rana Kapoor may continue as the MD and CEO till 31 January 2019,” adding that the board will meet on September 25 to decide on the future course of action.

On June 12 the bank's shareholders at the annual general meeting have decided to re-appoint Kapoor as MD and CEO for another 3 years and had sent the proposal to RBI for approval.

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In response, RBI on August 31 had extended Kappor's tenure till further notice that was supposed to end on September 1, 2018, but had not passed the proposal to extend Kapoor's tenure for another 3 years and asked Yes Bank to reconsider Kapoor's appointment.

According to reports, Yes Bank will now request RBI to reconsider its decision on the appointment of Kapoor only till January 31 2019.

It is for the first time when a bank perceived to be a promoter driven will lose its promoter having control over the operations of the bank.