Published 21:17 IST, March 26th 2020
Yes Bank Board of Directors reconstituted; administrator Prashant Kumar named as MD & CEO
In a letter to the stock exchanges, Yes Bank revealed that its Board of Directors had been reconstituted and noted in the Board meeting held on Thursday
In a letter to the stock exchanges, Yes Bank revealed that its Board of Directors had been reconstituted and noted in the Board meeting held on Thursday. This has been done as per the ‘Yes Bank Limited Reconstruction Scheme, 2020’ notified by the Ministry of Finance, Government of India. Prashant Kumar, the RBI-appointed administrator of the bank has been named as the new Managing Director and CEO of Yes Bank. Apart from R Gandhi and Ananth Gopalakrishnan who were appointed by the RBI on March 20, other members on the Board of Directors include Sunil Mehta as non-executive Chairman and Mahesh Krishnamurti and Atul Bheda as non-executive Directors. Meanwhile, Partha Sengupta and Swaminathan Janakiraman have been nominated by the State Bank of India on the Board of Directors.
Read the full letter here:
The Yes Bank 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. The 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, other 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 the imposition of the moratorium, the full banking services of Yes Bank became operational. In a tweet, Yes Bank confirmed the development. It thanked the customers for their patience and cooperation.
Updated 21:17 IST, March 26th 2020