Timeline: Rana Kapoor led Yes Bank gets new CEO; check how the events unfolded amid tussle with RBI
Yes Bank Ltd, India`s fifth largest private-sector lender by assets, has today got a new CEO in Ravneet Gill. The bank has had a tumultuous couple of months since the country`s central bank trimmed extension to its chief executive officer`s (CEO`s) term in September. The move by the Reserve Bank of India (RBI), which has already clamped down on the financial sector due to rising levels of bad loans, has hit Yes Bank`s share price hard and also spurred several departures in the company`s top brass. The developments since Sept. 19 have wiped off over 290 billion rupees ($4.06 billion) from the company`s market value, as of Tuesday`s close. Here's how the rana Kapoor Yes Bank saga unfolded:
Rana Kapoor's re-appointment as MD
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: Twitter
RBI nod for Kapoor
Aug 30: Bank gets RBI nod for Kapoor to continue as MD and CEO till further notice from the central bank. Image Source: Reuters
Kapoor's term
Sept 19: RBI cuts short Kapoor's term till Jan. 31, 2019. Image Source: DNA
Yes Bank shares tank over 30 percent
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: Reuters
Committee to search for Kapoor`s successor
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: DNA
Rana kapoor will pass his promoter shares to his daughters
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.
• 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: Twitter
OP Bhatt and T S Vijayan as external experts of the committee
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: Reuters
Yes Bank appoints Korn Ferry
Oct 11: Yes Bank appoints advisory firm Korn Ferry to help find a new CEO. Image Source: Reuters
RBI refuses to give more time to Kapoor
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
Yes Bank`s second-quarter profit
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.
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
RBI on Ashok Chawla
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; DNA
Ashok Chawla resigns from Yes Bank
Nov 14: Ashok Chawla resigns from Yes Bank`s board. Vasant Gujarathi also steps down as independent director. Image Source: Reuters
OP Bhatt resigns from the committee
Nov 15: OP Bhatt resigns as an external expert of the search and selection committee, due to "potential conflict of interest". Image Source: Reuters
R. Chandrashekhar resigns
Nov 19: Independent director Rentala Chandrashekhar resigns. Image source: DNA
Yes Bank: Selection process for MD and CEO is on track
Nov 20: Yes Bank says that selection process for the MD and CEO is on track, recent resignations of board members bear no impact.
• 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
Captions: Reuters
