Yes Bank Board of Directors reconstituted; administrator Prashant Kumar named as MD & CEO

In a letter to stock exchanges, Yes Bank revealed that its Board of Directors had been reconstituted and ted in Board meeting held on Thursday. This has been done as per ‘Yes Bank Limited Reconstruction Scheme, 2020’ tified by Ministry of Finance, Government of India. Prashant Kumar, RBI-appointed administrator of bank has been named as new Managing Director and CEO of Yes Bank. Apart from R Gandhi and Ananth Gopalakrishnan who were appointed by RBI on March 20, or members on Board of Directors include Sunil Mehta as n-executive Chairman and Mahesh Krishnamurti and Atul Bheda as n-executive Directors. Meanwhile, Partha Sengupta and Swaminathan Janakiraman have been minated by State Bank of India on Board of Directors.  

Read: SBI To Buy 725 Crore Shares Of Yes Bank At Rs.10 Each; Shareholding To Remain Up To 49%

Read full letter here:

Read: RBI Appoints Two Additional Directors To Yes Bank Board; Tenure Commences On March 26

Yes Bank 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.  SBI has 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 have joined SBI in investing in Yes Bank.  

Nearly two weeks after imposition of moratorium, full banking services of Yes Bank became operational. In a tweet, Yes Bank confirmed development. It thanked customers for ir patience and cooperation.

Read: Anil Ambani Appears At ED In Money-laundering Probe Against Yes Bank Founder Rana Kapoor

Read: 'Outstanding Term Loans From Yes Bank To IBHFL And Its Promoters Are Zero': Indiabulls