Days after a marathon board meeting to decide the future course of action in terms of finding Rana Kapoor’s successor post RBI’s refusal to grant him another full term, the MD and CEO of the YES bank has spoken out about his exit.
On Friday, Kapoor took to social media platform Twitter to express his commitment to the shares he owns in the bank. He tweeted, “Even after I demit office as MD & CEO of YES Bank, I will never sell my YES Bank shares,” adding that he will eventually bequeath his promoter shares to his three daughters and subsequently to their children. He also said that he will add a request in his will “stating not to sell a single share.”
Comparing his shares in the bank to diamonds, Kapoor further tweeted, “Diamonds are Forever: My promoter shares of [YES Bank] are invaluable to me.”
Commenting on his imminent exit from the bank, he said, “In this leadership transition at YES Bank, I continue to remain fully committed to the interests of the bank and all its stakeholders. I will be fully guided by the board of directors of YES Ban[k] and the Reserve Bank of India.”
A banker of almost 40 years, Rana Kapoor founded YES Bank in 2003 with Ashok Kapur and Harkirat Singh, his colleagues from Rabo India Finance. The three had also set up the India arm of Dutch lender Rabobank.
The RBI had earlier denied a full-term to YES Bank chief Rana Kapoor, allowing him an extension of only four months till January 2019. Kapoor’s exit is the latest indicator of a sector-wide top level churn in the private banking space.
Sector insiders attributed the RBI’s decision to two factors–NPA divergence YES Bank’s reportage and RBI’s review (In FY17 the bank’s divergence stood at ₹6,355 crore), and the lack of a proper succession plan.
The board of YES Bank met on Tuesday to deliberate on the road ahead in terms of leadership. At the end of the meeting, the bank’s board said it has decided to set up a search and selection committee to identify Kapoor’s successor.
However, the bank’s board has said that it will need more time to find the right successor and has therefore, decided to request the RBI for an extension to Kapoor’s term.
YES Bank’s board said it will request the RBI for a minimum extension of up to April 30, 2019 for finalisation of audited financial statements for the current fiscal, and a further extension to September 30, 2019 subject to RBI approval for the AGM process to be completed.