Who will pick Yes Bank chief Rana Kapoor's successor? All you want to know; shares rise over 5%
In early hours of market opening, Yes Bank has touched an intraday high of Rs 217.50 which results in overall rise of 5.48% on BSE. However, the thing to note is that from September 19 till September 30, Yes Bank share price had dropped by over 73%.
The share price of Yes Bank once again continued its rally on stock exchanges, emerging as a best performer. Till end of September, the stock price which was least preferred or worth investing, has finally reversed its losses. In fact to the surprise of many, if you had purchased the Yes Bank share price when it was at its extreme lowest on September 28, you might have been in the position of gaining hefty amount in short term period. Today, the share price of Yes Bank is trading at Rs 216.75 per piece up Rs 10.55 or 5.12% on BSE at around 1138 hours. However, in early hours of market opening, Yes Bank has touched an intraday high of Rs 217.50 which results in overall rise of 5.48% on BSE.
The optimism of investors on Yes Bank comes after, last week on Friday, the bank revealed the names of 'Search & Selection Committee' who will be responsible for picking the successor of the CEO & MD Rana Kapoor.
There are three internal members of Yes Bank on the committee list, while two other are external. Looking just at external members has surely given investors hope in Yes Bank revival, as it comprises of big names.
Among the internal members were - Brahm Dutt, Independent Director (Chairman- NRC), Lt. General Dr. Mukesh Sabharwal (Retd.) - Independent Director (Member - NRC) and Subhash Chander Kalia, Non-Executive Non-Independent Director (Member - NRC).
Whereas the external members were T S Vijayan, past Chairman of IRDAI and LIC , followed by O P Bhatt, past CMD, State Bank of India.
T S Vijayan
Before assuming charge as Chairman, IRDAI, T S Vijayan worked in various capacities in the Life Insurance Corporation of India and took over as its Chairman in 2006. He took charge as Chairman of LIC when competition was at its peak upon opening of insurance sector in 2001. His career in Life Insurance Corporation of India (LIC) started as a Direct Recruit Officer in the year 1977 and some of the important assignments held by him were Managing Director of LIC, Executive Director (IT & BPR), Director and Chief Executive of LIC Housing Finance Limited (LICHFL) Carehomes.
His specialization includes Information Technology, HR & Marketing. He was the architect of the concept of Satellite Offices in LIC which brought about a revolution in customer service. He attended several national and international seminars in the areas of Information Technology, Strategic Management, Corporate Governance, Financial Management, Value creation in Service
He has received extensive training in Business Schools like Indian School of Business and ap ex training institutes like NIA, MDC etc.
O. P. Bhatt
O. P. Bhatt was the Chairman of the State Bank of India. Under his leadership, State Bank of India (SBI) rose on the global list rankings of Fortune 500.
Bhatt initiated a pathbreaking Transformation Exercise on a large scale to transform the Bank from an old, hierarchal, transaction based bureaucratic government Bank, dealing in traditional services to a modern, customer friendly, relationship based tech savvy financial super market.
Bhatt has served on the Board of many organisations like Export-Import Bank of India, Institute of Banking Personnel Selection, Indian Institute of Banking & Finance, Indian Council for Research on International Economic Relations, Board of Trade Ministry of Commerce and Industry, Directorate General of Foreign Trade, Standing Committee on Infrastructure Finance, Ministry of Finance, Steering Committee on Financial Resources, Planning Commission.
He was also a member of the US-India CEO Forum, Indo-French CEO Forum.
Apart from this Yes Bank also mentioned that, they have invited proposals from Global Leadership Advisory Firms specializing in BFSI.
The first meeting of the newly formed comittee will be held on October 11, 2018 for finalization of the advisory firm.
On October 01, Yes Bank said, "Search & Selection Committee', assisted by a Global Leadership Advisory Firm, will evaluate both internal and external candidates and make suitable recommendations to the Board of Directors for onward submission to RBI.”
It added, "The 'Search & Selection Committee' and the Board of Directors are fully committed to expeditiously completing the said process within the current stipulated timelines of RBI.”
A background check: Yes Bank sought RBI approval for re-appointing Rana Kapoor as MD & CEO for another 3 years, however shockingly, the central bank has decided to deny the bank’s demand. In fact, it has asked Kapoor to leave the Mumbai-based private lender and even set a deadline. By end of January 2019, Kapoor is expected to leave Yes Bank, however, he will maintain his holding in the bank of 4.34% share capital as on June 2018.
From September 19 till September 30, Yes Bank share price had dropped by over 75% and touched an intraday low of Rs 166.15 per piece on September 28.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.