YES Bank on Monday said it has approved reconstitution of its board with Prashant Kumar as the new MD & CEO.
Kumar, former chief financial officer and deputy managing director of State Bank of India, is currently overseeing the troubled private sector lender as RBI-appointed administrator.
The other board members will be Sunil Mehta, former non-executive chairman of Punjab National Bank, as the non executive chairman of YES Bank, Mahesh Krishnamurthy and Atul Bheda as non-executive directors.
SBI will have the right to nominate two directors on the board of directors of YES Bank.
"The reconstitution of the board of directors of the Bank as set out, shall take effect immediately after the expiry of seven calendar days from the date of cessation of the moratorium in accordance with paragraph 11 of the Scheme," YES Bank said in a regulatory filing undersigned by the bank's administrator Kumar. The administrator has been appointed by the Reserve Bank of India under Section 36ACA(2) of the Banking Regulation Act, 1949 with effect from March 6, 2020.
The affairs, business and property of YES Bank are currently managed by Kumar.
YES Bank said it has also amended the memorandum and articles of association of YES Bank Limited to reflect the application provisions of the Reconstruction Scheme.
The moratorium on YES Bank, placing a withdrawal limit of Rs 50,000 on deposits, is to be lifted by 6 PM on March 18, 2020 which is much before the original date of April 3.
The bank on March 5 was put under moratorium by RBI due to serious financial mismanagement under its former MD & CEO Rana Kapoor, who currently is in the custody of probe agencies, as well as failure to raise enough capital to keep afloat.
The board of the bank was superseded with immediate effect, and other financial activities such as granting new loans, investment, among others, were also curbed.
As per the bank's rescue plan outlined by RBI, SBI will have a stake of 49 per cent in YES Bank through capital infusion of Rs 7,250 crore.
Private lenders ICICI Bank, Axis Bank, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank, Federal Bank and mortgage lender HDFC Ltd have also infused capital in cash-strapped YES Bank.