Rana Kapoor led Yes Bank row with RBI: Blow by blow account

Dec 03, 2018, 21:29 PM IST
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Rana Kapoor led Yes Bank Ltd, India's fifth largest private-sector lender by assets, has had a rough ride since the country`s central bank trimmed its chief executive officer`s (CEO) term in September.

The tiff with the Reserve Bank of India (RBI) has caused several top executives to exit Yes Bank`s board, and prompted rating cuts.

The move by the RBI, which has already clamped down on the financial sector due to rising levels of bad loans, has also hit Yes Bank`s share price hard.

The developments since Sept. 19 have knocked off about 345 billion rupees ($4.95 billion) from the company`s market value, as of Friday`s close.

Here`s a look at how the events panned out:

1/22

June 12: Yes Bank`s shareholders approve Rana Kapoor`s re-appointment as managing director (MD) and CEO for three years from Sept. 1.

Image source: DNA

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2/22

Aug 30: Bank gets RBI`s nod for Kapoor to continue as MD and CEO till further notice from the central bank.

Image source: Reuters

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3/22

Sept 19: RBI cuts short Kapoor`s term till Jan. 31, 2019.

Image source: PTI

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4/22

Sept 21: On the first day of trade after RBI`s announcement, Yes Bank shares tank over 30 percent, and the lender loses as much as $3.1 billion in market value.

Market insiders say RBI`s move exemplifies its increasingly assertive approach in tackling the bad debt problem plaguing India`s banking sector.

Image source: PTI

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5/22

Sept 25: Lender`s board decides to seek RBI`s nod to extend Kapoor`s term until at least April 30, 2019, says it will form a committee to search for Kapoor`s successor.

Image source: PTI

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6/22

Sept 28: Kapoor, in a tweet, says he remains committed to interests of the bank and its stakeholders. He also says he will never sell his promoter shares, but pass them on to his daughters.

Image source: DNA

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7/22

Rating firm CARE Ratings places Yes Bank`s debt instruments under `credit watch with developing implications`, citing RBI`s move to restrict Kapoor`s term.

Image source: PTI

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8/22

Oct 5: Bank names T S Vijayan, former chairman of India`s insurance regulator, and OP Bhatt, former chairman of State Bank of India, as external experts of the search and selection committee.

Image source: Zeenews.com

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9/22

Oct 11: Yes Bank appoints advisory firm Korn Ferry to help find a new CEO.

Image source: Zeenews.com

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10/22

Oct 17: RBI refuses to give Rana Kapoor more time at the bank and asks the lender to find a new CEO by Feb 1, 2019. Yes Bank says it aims to complete the recruitment process by mid-Dec.

Image source: Reuters

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11/22

Oct 25: Yes Bank`s second-quarter profit misses estimates by a wide berth as provisions for bad loans and mark-to-market losses more than double, and asset quality deteriorates.

The lender also says it has an exposure to debt-laden Infrastructure Leasing and Financial Services.

Image source: Reuters

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12/22

Oct 26: The bank`s CEO search panel finalises a potential candidate profile. Korn Ferry also shares a list of candidate pool.

Image source: Reuters

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13/22

Nov 12: Media report says Yes Bank sought guidance from the RBI on Ashok Chawla continuing as chairman after being named in a corruption chargesheet.

Image source: Reuters

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14/22

Nov 14: Ashok Chawla resigns from Yes Bank`s board. Vasant Gujarathi also steps down as independent director.

Image source: Official website

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15/22

Nov 15: OP Bhatt resigns as an external expert of the search and selection committee, due to "potential conflict of interest".

Image source: Reuters

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16/22

Nov 19: Independent director Rentala Chandrashekhar resigns.

Image source: PIB

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17/22

Nov 20: Yes Bank says that selection process for the MD and CEO is on track, recent resignations of board members bear no impact. 

Image source: Reuters

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18/22

Efforts are underway for mutual resolution between Rana Kapoor and Madhu Kapur and her family, the co-promoter. Board now consists of seven members, after addition of Uttam Prakash Agarwal.

Image source: Reuters

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19/22

Nov 27: Ratings agency Moody`s downgrades the lender`s rating, says the resignations from the bank`s board raise concerns over corporate governance.

Image source: PTI

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20/22

Nov 28: Media report says Kapoor`s investment vehicles made transactions that could be questioned by investors and regulators; Yes Bank denies involvement with the fund management of these investment vehicles.

Image source: Official website

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21/22

ICRA and CARE Ratings downgrade Yes Bank`s debt instruments; ICRA cites corporate governance concerns.

Image source: PTI

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22/22

Yes Bank`s board is due to meet on Dec. 13 to get an update from the search panel on the progress in CEO selection, and to evaluate a new chairman.

Image source: PTI

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