Besides, the private sector lender is expected to overhaul its board after receiving nod from its promoters, sources said.
"We would like to inform that Rentala Chandrashekhar, Non-Executive, Independent Director has tendered his resignation from the board of directors of YES Bank on November 19, 2018 with immediate effect," the bank said in the filing.
The bank cited personal reasons for Chandrashekhar's resgnation.
"The Nomination & Remuneration Committee of the bank will look for a suitable replacement in the field of Information Technology & Cyber Security in terms of applicable provisions of Sebi regulations, Companies Act and RBI Act," it said further.
YES Bank's Nomination & Remuneration Committee is reviewing the performance of the board members, according to the sources.
"The new board members will be acceptable to both the promoters group. Both promoters are in favour of overhauling the Yes Bank board to weed out under-performing members and address past governance issues," the sources said.
Bhatt is under CBI's scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Vijay Mallya. Besides, he is also on the global board of Standard Chartered Bank which made a case of conflict of interest.
Last month, YES Bank had said the search panel has finalised the potential candidate profile.
The RBI, it is learnt, has found corporate governance issues and under-reporting of non-performing assets, which has led to a series of negative developments in the private sector lender's functioning in the recent past.