Yes Bank appoints Neeraj Dhawan as Chief Risk Officer with immediate effect for 3 years

In a regulatory filing on Saturday, Yes Bank anunced appointment of Neeraj Dhawan as Chief Risk Officer with immediate effect for a period of three years. This decision was taken by Board of Directors via a resolution dated May 1, 2020. Dhawan replaces Ashish Agarwal who will be transitioning to a new role in Yes Bank. new Chief Risk Officer has 29 years of experience in financial services and banking industry. Presently, he was serving as chief risk officer for retail and business banking at Yes Bank. 

Read: Yes Bank Board Of Directors Reconstituted; Administrator Prashant Kumar Named As MD & CEO

Yes Bank overcomes crisis

On March 5, RBI imposed a moratorium on Yes Bank, superseding its Board of Directors and restricting withdrawal limit for customers. RBI cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of reasons for taking action. A day later, RBI unveiled a draft reconstruction scheme of Yes Bank in public domain. 

On March 13, Union Cabinet approved reconstruction scheme of Yes Bank as proposed by RBI. Initially, SBI declared that it would purchase 725 crore shares of Yes Bank at Rs. 10 per share subject to regulatory approvals. As per reports, or lenders including ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, and individuals like Radhakrishna Damani, Rakesh Jhunjhunwala and Azim Premji Trust joined SBI in investing in Yes Bank. Nearly two weeks after imposition of moratorium, full banking services of Yes Bank became operational.

Read: Three Banks Reduce Shareholdings In Yes Bank Within 15 Days Of Reconstitution By RBI

Board of Directors was reconstituted on March 26 with RBI-appointed administrator Prashant Kumar being named  new Managing Director and CEO of Yes Bank. Partha Sengupta and Swaminathan Janakiraman were minated by SBI on Board of Directors. Recent reports indicate that three banks - namely Kotak Mahindra Bank, Federal Bank, and IDFC First Bank reduced ir stake in Yes Bank between March 17 and March 31. While Kotak Mahindra Bank sold off almost 37.8% of its allowed sellable shares, Federal Bank and IDFC First Bank sold off almost 78% and 64% of ir shares respectively. 

Read: Yes Bank Case: CBI Custody Of DHFL Promoters Kapil & Dheeraj Wadhawan Extended Till May 1

Read: PMLA Court Rejects Bail Plea Of Yes Bank Founder Rana Kapoor Who Cited COVID-19 Threat