Succession blues: YES Bank's board failed in its responsibilities

The board has a nomination and remuneration committee, comprising three independent directors; should it not have raised the issue of succession planning some years ago?

The Indian corporate and banking system appears to offer serial examples of boards failing in their responsibilities to stakeholders. The Yes Bank board’s request to the Reserve Bank of India (RBI) to grant an extension of eight months to Managing Director and CEO Rana Kapoor, presents yet another. The board said it will first seek an extension for Mr Kapoor till April 30 for finalisation of financial statements, and thereafter a further extension till September 30 for completing the annual general meeting process. Last week, the banking regulator had stipulated that Mr Kapoor would have to step down in January