RBI appoints two Additional Directors on Yes Bank's new board

The Reserve Bank of India (RBI) on Friday appointed R Gandhi and Ananth Narayan Gopalakrishnan as Additional Directors on the board of Yes Bank Ltd from March 26 for a period of two years.

Gandhi is former RBI Deputy Governor and Gopalakrishnan is Associate Professor at S P Jain Institute of Management and Research.

On March 5, the Reserve Bank of India (RBI) had imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3 in view of its poor financial health due to bad loans.

The government notified Yes Bank Ltd Reconstruction Scheme 2020 on March 13. Key stakeholders, including the RBI, have put in place various measures to bolster the bank's liquidity.

While the moratorium was initially slated to continue till April 3, it was lifted in 13 days on March 18 as per the scheme.

The scheme involves equity infusion of Rs 10,000 crore by eight entities, mainly banks led by State Bank of India, and the reconstitution of Yes Bank's board with Prashant Kumar (former Deputy Managing Director and Chief Financial Officer of SBI) taking over as Managing Director and Chief Executive Officer.