Published 17:35 IST, May 2nd 2020
Yes Bank appoints Neeraj Dhawan as Chief Risk Officer with immediate effect for 3 years
In a regulatory filing, Yes Bank announced the appointment of Neeraj Dhawan as the Chief Risk Officer with immediate effect for a period of three years.
Advertisement
In a regulatory filing on Saturday, Yes Bank announced the appointment of Neeraj Dhawan as the Chief Risk Officer with immediate effect for a period of three years. This decision was taken by the 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. The new Chief Risk Officer has 29 years of experience in financial services and the banking industry. Presently, he was serving as the chief risk officer for retail and business banking at Yes Bank.
Yes Bank overcomes crisis
On March 5, the RBI imposed a moratorium on Yes Bank, superseding its Board of Directors and restricting the withdrawal limit for customers. The RBI cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of the reasons for taking action. A day later, the RBI unveiled a draft reconstruction scheme of Yes Bank in the public domain.
On March 13, the Union Cabinet approved the reconstruction scheme of Yes Bank as proposed by RBI. Initially, the SBI declared that it would purchase 725 crore shares of Yes Bank at Rs. 10 per share subject to regulatory approvals. As per reports, other 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 the imposition of the moratorium, the full banking services of Yes Bank became operational.
The Board of Directors was reconstituted on March 26 with RBI-appointed administrator Prashant Kumar being named the new Managing Director and CEO of Yes Bank. Partha Sengupta and Swaminathan Janakiraman were nominated by the SBI on the Board of Directors. Recent reports indicate that three banks - namely Kotak Mahindra Bank, Federal Bank, and IDFC First Bank reduced their 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 their shares respectively.
17:35 IST, May 2nd 2020