Yes Bank board reconstituted with appointment of 8 members

Yes Bank board was reconstituted with immediate effect on Thursday with the appointment of eight members.

Group Company Secretary, Shivanand R Shettigar in a letter wrote, "We wish to inform you that pursuant to the 'Yes Bank Limited Reconstruction Scheme, 2020' notified by the Ministry of Finance, Government of India, the office of the Administrator of the Bank, Prashant Kumar stands vacated and the Board of Directors of the Bank has been re-constituted comprising of eight persons with effect from March 26."

The eight members include--Sunil Mehta as Executive Chairman, Mahesh Krishnamurti as Non-Executive Director, Atul Bheda as Non-Executive Director, R Gandhi as Additional Director appointed by Reserve Bank of India.

Ananth Narayan Gopalakrishnan as Additional Director appointed by Reserve Bank of India, Partha Pratim Sengupta as Director nominated by State Bank of India, Swaminathan Janakiraman as Director nominated by State Bank of India and Prashant Kumar as Managing Director and CEO.

"The reconstitution of the Board of Directors as per the Scheme and appointment of the New Board has been noted in the Board Meeting held today i.e. March 26, 2020, including the appointment of the Directors nominated by State Bank of India as Nominee Directors on the Board of the Bank," he added.

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.