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Appointment of R Gandhi as additional director a positive move: Yes Bank

Press Trust of India  |  Mumbai 

Friday said appointment of former RBI as an on its board is a positive move which will not impede smooth functioning at the

Welcoming the appointment in a statement, the said the appointment is "very positive and constructive measure" to strengthen the board.

It added the of (RBI) is supportive of a "strong and successful"

It can be noted that there are very few precedents of such action by RBI in the private and none in the new-age

The scrip took a beating since the appointment of Gandhi, but was trading 0.40 per cent up at Rs 138.35 a piece at 1310 hrs Friday.

"We warmly welcome the appointment of to the Board of Yes Bank by RBI under Section 36AB of the Banking Regulation Act, 1949. This is a very positive and constructive measure aimed at further strengthening the Board," a said.

"This will not impede the smooth, independent and effective functioning of the Bank in any way," it said.

The RBI had cut short the term of the lender's on concerns over governance. The RBI action had come after two consecutive years of the bank having been found of under-reporting its stock of NPAs.

The bank hired former head to replace Kapoor. In the first quarter under Gill, it reported a maiden loss of Rs 1,506 crore. Gill had said the bank expects significant losses on its exposure to low-rated borrowers and made provisions for the same, resulting in the loss.

Analysts had also welcomed the appointment of Gandhi, saying this signifies that the RBI is working in tandem with the bank's new management.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 14:21 IST