Unusual acts of omission

RBI's ambivalent stand on YES Bank CEO raises uncertainty

Two recent developments raise questions about the Reserve Bank of India’s (RBI’s) consistency in the governance of private banks. The first is the central bank’s tardy move to approve the reappointment of Rana Kapoor as managing director (MD) and chief executive officer (CEO) of YES Bank. The central bank’s silence till August 30, which was a day before Mr Kapoor’s three-year term expired, saw the bank’s stock price plunge. The uncertainty was needless as the bank’s board had approved his reappointment in June and the banking regulator had ample time to consider the issue. Second, granting him conditional approval under