You are here: Home » PTI Stories » National » News
Business Standard

Yes Bank co-promoters agree to nominate one director each on board

Press Trust of India  |  New Delhi 

Yes Bank promoters Rana Kapoor and Madhu Kapur have agreed to nominate one representative director each on the bank's board as part of truce being under the works, the private lender said Tuesday.

The bank in November had said that efforts were underway for mutual resolution and truce between Rana Kapoor group and Madhu Kapur and her family, the two co-promoters groups of the private sector lender.

Yes Bank said recently select senior board of directors of the bank had interacted with Kapur and her family.

"Madhu Kapur Group and Rana Kapoor Group have agreed to nominate one representative director each on the bank's board, subject to the completion of the necessary documentation," Yes Bank said in a regulatory filing.

The two new appointed directors will be announced at the next scheduled Board meeting in April 2019.

"This is intended to ensure better coordination and support by the two promoter groups with the new MD & CEO and the board of directors of the bank," it added.

Yes Bank also said that its board and recommended the name of a senior board member of the bank to the Reserve Bank to temporarily hold the office of the MD&CEO as an interim special duty officer.

The senior official will hold the position as "Board Director on Interim Special Duty (MD & CEO's responsibilities)' from Feb 1, 2019 till such date Ravneet Gill assumes office in March, 2019," it said.

Last week, Yes Bank had appointed Deutsche Bank India head Ravneet Singh Gilll as its Managing Director & Chief Executive Officer (MD&CEO) as incumbent Rana Kapoor is required to step down on January 31.

As per sources, the bank has named Ajai Kumar, the non-executive non-independent director on its board to be acting an interim MD&CEO for the RBI's recommendation.

In September, the Reserve Bank had asked Kapoor to find a replacement for himself. Kapoor had co-founded the bank in 2004 along with his late brother-in-law Ashok Kapur, who died in the 2008 Mumbai terror attacks, post which his wife Madhu Kapur became the co-promoter of the bank.

Kapoor and Kapur have been caught-up in a legal battle since 2015 on some issues including nominating members of their choice on the board of the bank.

Madhu is sister of Rana Kapoor's wife Bindu and the two co-promoters of the bank have been working towards reaching a settlement.

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

First Published: Tue, January 29 2019. 18:55 IST
RECOMMENDED FOR YOU