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YES Bank's R Chandrashekhar resigns; promoters seek board overhaul

A board meeting was held on November 13 and the latest developments are the result of the same

Press Trust of India  |  New Delhi 

YES Bank Photo: Reuters
YES Bank | Photo: Reuters

In a third resignation from board, Monday put in his papers, according to a regulatory filing.

Besides, the is expected to overhaul its board after receiving nod from its promoters, sources said.

"We would like to inform that Rentala Chandrashekhar, Non-Executive, has tendered his resignation from the board of directors of on November 19, 2018 with immediate effect," the 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.

Both the of the bank, led by its MD and and Madhu Kapur, are in favour of a clean-up and overhaul of the board, they added.

"The new board members will be acceptable to both the promoters group. Both promoters are in favour of overhauling board to weed out under-performing members and address past governance issues," the sources said.

Earlier last week, former SBI O P resigned from the panel set up by the bank to find a successor for

is under CBI's scanner in connection with loans given to the now defunct Kingfisher Airlines, promoted by fugitive liquor baron Besides, he is also on the global board of Standard Chartered Bank which made a case of conflict of interest.

On November 14, the bank's non-executive had resigned as his name figured in a CBI chargesheet filed in the Aircel-Maxis case.

Another too had tendered his resignation on the same day over audit committee performance issues.

The Reserve Bank has asked the to find a replacement for its founder MD and by January 31.

Last month, YES Bank had said the 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.

The bank currently has seven board members -- Rana Kapoor, Mukesh Sabharwal, Brahm Dutt, Subhash Kalia, Ajai Kumar, and Rentala Chandrashekhar, as per the bank's website.

First Published: Mon, November 19 2018. 19:25 IST