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Yes Bank Ltd, which earlier wanted to seek an extension for Managing Director and Chief Executive Officer Rana Kapoor till 30 April, 2019 said the private lender will find his successor by the 31 January, 2019, deadline given by the Reserve Bank of India.
The board would appoint two external members on its search and selection committee by 7 October, the bank said in a statement today.
The search panel, according to the bank, will look at a pool of internal and external candidates.
The central bank, in a statement issued last month, allowed Kapoor to continue only till 31 January 2019 against the board-approved three-year term ending in September 2021. Yes Bank, which Kapoor co-founded, has since lost nearly half its market value as analysts fear that his exit could slow down the bank’s growth.
To be sure, the lender’s board earlier said that it intends to request the RBI to grant Kapoor an extension till 30 April, 2019, so that he can finalise the results for 2018-19. And, if the RBI permits, the term may be extended till Sept. 30, 2019, so that Kapoor may fulfill responsibilities at the annual general meeting.
The board had also said last month that Rajat Monga and Pralay Mondal, senior group presidents, would be elevated as executive directors as part of a long-term succession plan. The bank said today that the proposal has been submitted for the RBI’s approval.
Amid speculation about the bank’s asset quality, the lender today released numbers to allay fears. The asset quality remains stable, it said in the statement, reiterating its credit cost guidance at 50-70 basis points for the ongoing financial year compared with 76 basis points in 2017-18.
The numbers for the second quarter are being released before the bank’s official announcement and are subject to approval from the board, its audit committee and the statutory auditors, the statement said.
(This story was first published in BloombergQuint and has been republished here with due permission.)
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