YES Bank seeks more time to replace Rana Kapoor

The board of YES Bank met on Tuesday to deliberate on the road ahead in terms of leadership after the RBI allowed current MD & CEO Rana Kapoor to stay on for only four more months. 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.

In an exchange filing that was posted late Tuesday, the bank said the search and selection committee will comprise of three existing nomination and remuneration committee board members and two external experts.

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. The bank’s exchange filing said, “given the role of Shri Rana Kapoor as MD and CEO since inception of the bank in 2004, and the time consuming challenges of finding a suitable successor, that the incumbent MD and CEO be given further time in his current position beyond January 31, 2019.”

The 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.

The board also said that this period will be crucial to identify and enable Kapoor’s successor.

YES Bank’s exchange filing mentioned that two senior leaders at the bank will be appointed as executive directors subject to RBI approval. The two names are Rajat Monga and Pralay Mondal, both senior group presidents at the bank. This, the board said, was a move towards ensuring a long-term succession plan.

Speaking to a TV news channel post the board meeting, R Chandrashekhar, former NASSCOM president and board member at YES Bank, said that the meeting today was focussed on the process to find Kapoor’s successor and that the question of Kapoor retaining or letting go of his position on the board did not come up.

It remains to be seen whether the RBI will agree to the bank’s request for an extension.