Yes Bank on Thursday said it was on track to find a replacement for Rana Kapoor, the present MD and CEO, within the RBI-mandated deadline of February 1.
However, the lender’s shares fell sharply as the market was expecting some clarity on this issue at the bank’s board meeting on Thursday.
Yes Bank now plans to submit the final recommendation for the CEO’s post to the Reserve Bank of India (RBI) after the next board meeting on January 9, India's fifth largest private sector lender by assets said in a statement.
On the Bombay Stock Exchange, the Yes Bank scrip closed 6.48 per cent lower at Rs 174.70. Earlier, the stock had risen 4 per cent to a day's high of Rs 174.70.
Meanwhile, the bank has finalised the candidate for the position of chairman and will be seeking approval from the RBI.
The move was necessitated following the resignation of Ashok Chawla from the post last month. The bank, however, did not disclose the candidate’s name.
In September, the RBI decided against extending Rana Kapoor’s term as MD and CEO beyond January 31, 2019 and asked the bank to find a replacement.
“The bank’s nomination & remuneration committee (N&RC) and the board of directors has finalised the recommendation for the non-executive part-time chairman position and shall be promptly seeking requisite approvals from the Reserve Bank of India,” Yes Bank said.
On the appointment of the new MD and CEO, the bank said the search & selection committee (SSC) has discussed and deliberated on the final shortlisted external and internal candidates presented by consulting firm Korn Ferry post their comprehensive interviews and assessment.
“The SSC will now engage with the candidates over the next few days for finalisation. The final recommendation will be submitted to the RBI by the board of directors post their next meeting scheduled on January 9, 2019,” it added.
Following the last meeting of the N&RC, two newly appointed additional directors (independent) T.S. Vijayan and Uttam Prakash Agarwal attended their first board meeting on Thursday.
It further said the N&RC has also evaluated profiles for additional directors, especially with expertise in information technology, to lead the bank’s IT strategy committee.
The N&RC will finalise the same shortly, after requisite due diligence, Yes Bank said.